When inflation rises, the Fed typically raises interest rates to reduce spending.

Name: When inflation rises, the Fed typically raises interest rates to reduce spending.
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When inflation rises, the Fed typically raises interest rates in order to reduce spending and slow down the economy, which can help to control inflation. Higher interest rates make borrowing more expensive, which can discourage consumer and business spending, as well as discourage banks from lending money.

When Inflation Rises, the Fed Typically Raises Interest Rates to Reduce