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Answer the question below in a brief paragraph, Should The Fed lower rates/provide lending during recessions?...

Answer the question below in a brief paragraph,

Should The Fed lower rates/provide lending during recessions? Or do anything at all? Why or why not?
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Answer #1

It can be mentioned that during recession what happens is that many companies will fall short of liquidity as a result of which they will try to take out more loans with which inflation can prevail on the whole as a result of which in order to stop companies from taking loans it is important for the Federal Reserve to take up contractionary monetary policy or increase the the interest rate and reserve ratio so that the Federal Reserve can accumulate sufficient amount of reserves and prevent companies from borrowing more so that more amount of inflation will not come into play and this can keep the currency most stable on the whole. That is why Federal Reserve should increase the interest rates during recession

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