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12 August, 07:46

Assume there is concern that the United States may experience a recession. How should the Federal Reserve influence the dollar to prevent a recession?

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  1. 12 August, 08:10
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    A reduction in the volatility of the dollar is one of the consequences that would have a reduction of rates

    Explanation:

    The drop in interest rates of the main banks worldwide is one of the effects of the reduction in US rates by the Federal Reserve. This is defined in greater liquidity in the face of the slowdown of larger economies, in order to avoid a possible recession.

    A low rate generally drives equity assets globally, which is why there has been a rally in world markets that could continue with the increase in liquidity.
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