Help Save & Exit If the Fed Funds Rate within the Fled Funds Market started to go up as bankers lent money to each other, and if the Federal Reserve Bank wanted to have lower loan interest rates, then the Fed could use their Open Market Operations tool and buy U.S. government bonds. By flooding more money into the economy and into bank accounts, this action of buying more U.S. government bonds and increasing the money supply would help to lower loan interest rates. True or False