Between September 2007 and December 2008, the FOMC reduced the target federal funds rate 5.25 percentage points toward zero. A reason for this was that the FOMC:

Question

Quizplus · Accepted Answer

The FOMC reduced the target federal funds rate significantly during this period as a preemptive measure to counteract the emerging financial crisis and economic downturn, aiming to stimulate economic activity by making borrowing cheaper.

Between September 2007 and December 2008, the FOMC Reduced the Target