Why did the Fed cut interest rates in late 1998?
A)To help reduce the value of the dollar
B)To help increase the value of the dollar
C)Fear of the consequences of the Asian financial crisis
D)To offset the effects of low oil prices

Question

Quizplus · Accepted Answer

The Fed cut interest rates in late 1998 because of concerns about the potential impact of the Asian financial crisis on the US economy. The crisis had already led to significant declines in equity markets, particularly in Asian countries, and there were fears that this could lead to a broader global economic slowdown. By cutting interest rates, the Fed hoped to stimulate domestic economic activity and offset some of the negative effects of the crisis.

Why Did the Fed Cut Interest Rates in Late 1998