The actions of the Federal Reserve during Carter’s term resulted in Americans struggling to pay higher home and car interest rates. Americans enjoying lower home and car interest rates. most people losing their homes and cars because they couldn’t pay the higher interest rates. many people being able to buy more expensive homes and cars because of the lower interest rates.


Right A) Americans who are struggling to pay higher interest rates at home and in the car.

President Jimmy Carter struggled against a bad economy in the United States during his tenure (January, 1977- January, 1981). When he took office, the country was “stagnant” – a combination of inflation and minimal economic growth. The actions of the Federal Reserve Board, chaired by G. William Miller, added to further inflation problems. The rate of inflation ranged from 5.8% in 1976 to 7.7% in 1978. This meant that interest rates for home and car loans for American consumers became steeper and harder to pay. Then in 1979, the oil crisis hit as world oil production fell in the wake of the Iranian Revolution. In 1979, US inflation rose to 11.3%. That only made matters worse.

In 1979, Miller was replaced as chairman of the Federal Reserve by President Carter, replacing him with Paul Volcker. Volcker also continued to serve in that role under the Reagan administration, and played a major role in bringing inflation back under control.