why did the federal reserve allow interest rates to rise in 1979? to reduce borrowing costs to encourage…

why did the federal reserve allow interest rates to rise in 1979? to reduce borrowing costs to encourage inflation to reduce unemployment to fight inflation done

why did the federal reserve allow interest rates to rise in 1979? to reduce borrowing costs to encourage inflation to reduce unemployment to fight inflation done

Answer

Brief Explanations:

In 1979, the US was facing high - inflation. The Federal Reserve raised interest rates to make borrowing more expensive, reducing the money supply and consumer spending, which helps fight inflation.

Answer:

To fight inflation