Finance, Forex and Investments

how can interest rates fall during a recession without the government taking action?

So it is possible for interest rates to fall during a recession even without governments taking action to expand the money supply. How is this possible? the fed, not the government.

Public Comments

1. The fed controls interest rates for the most part..... However, during a recession the demand for new loans could drop creating a new lower equilibrium price...
2. The Fed Reserve bank has power over the interest rates, they are a individaul organisation. The government has no power over interest rates. Interest are falling to prevent the recession, so people can spend more and put into the economy.