How did the FED deal with the Great Depression?

Its policies discouraged lending at a time when more money was needed in the economy.

Explanation:

the Fed's decision to raise interest rates in 1928 and 1929. The Fed did this in an attempt to limit speculation in securities markets. This action slowed economic activity in the United States.

A third motivation to think about the Great Depression is that it drastically changed the job of government, particularly the central government, in our country's economy. Free Market Capitalism Caused the Great Depression.

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