Traditionally,Fed policymakers have been ________ to use higher interest rates to head off potential asset bubbles ________.

Question

Quizplus · Accepted Answer

Fed policymakers have been hesitant to use higher interest rates to head off potential asset bubbles because it may cause a slowdown in the economy. Higher interest rates can increase borrowing costs and reduce consumer spending and business investment, potentially leading to an economic slowdown.

Traditionally,Fed Policymakers Have Been ________ to Use Higher Interest Rates