When inflation is , the Fed aims to slow the economy.

In the case of the USA the central bank in charge of controlling the monetary system is the Federal Reserve, now in order for them to apply a contraction policy to reduce the amount of money spent they usually raise the interest rates which main goal would be to get consumers to save their money managing to slow down the economic growth and the inflation with it

Parrain Parrain · Answer 2 · 2022-04-13T12:02:02+02:00

If the Fed is trying to slow the economy down, it means that inflation is high.

Why would the Fed slow the economy down?

The Fed would engage in actions that slow down the economy, when it believes that inflation rates are too high.

This is because a fast growing economy will lead to higher inflation because the economy would be overheated. Slowing down the economy's growth would therefore reduce or stabilize inflation.

Find out more on oveheated economies at https://brainly.com/question/2025932.