What did the Federal Reserve do to try to reduce inflation?

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03-05-2018
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What did the Federal Reserve do to try to reduce inflation?

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g3729324 g3729324 · Answer 1 · 2018-05-03T03:06:35+02:00

g3729324 g3729324

03-05-2018

They can increase their interest rates. When the federal reserve does this, everyone else follows suit. This results in less interest in borrowed money and inevitably, reduced inflation.

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kayla519 kayla519 · Answer 2 · 2018-05-03T03:12:13+02:00

kayla519 kayla519

03-05-2018

When the federal reserve increases its interest rate banks have no choice but to increase their rates as well

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