The Federal Reserve's control of interest rates can significantly affect the value of the dollar. When the Fed lowers interest rates, it encourages borrowing and investment, which can stimulate economic growth. This increased economic activity can lead to inflation, which reduces the value of the dollar. Conversely, when the Fed raises interest rates, it discourages borrowing and investment, which can slow economic growth. This decreased economic activity can lead to deflation, which increases the value of the dollar.
Economics can be intimidating to the person who is not well-versed in business and mathematics. This...
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