What would the Fed do to the prime rate in order to grow us out of the recession?

What would the best plan be? What would the Fed do to the prime rate if it wanted to fight inflation?

Until lending is loosened up, and jobs are created, it really doesn’t matter.

2 Responses to “What would the Fed do to the prime rate in order to grow us out of the recession?”

  1. Joe Finkle says:

    They lower it to fight unemployment. They raise it to fight inflation. Right now, it’s at 0, so they’re pretty low on options.
    References :
    AP Macro econ in high school 12 years ago.

  2. extremeAmerican says:

    Until lending is loosened up, and jobs are created, it really doesn’t matter.
    References :

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