How did Ford's administration and the Federal Reserve respond to rising inflation in the 1970s? How did Ford's administration and the Federal Reserve respond to rising inflation in the 1970s? They sought to cut taxes for most Americans but close tax loop holes for major corporations to help stimulate spending They sought to cut government spending and raise interest rates, hoping to reduce the supply of money in the economy They sought to increase government assistance and lower interest to help consumers and homeowners afford what they needed They sought to increase government spending as a way to stimulate the economy and increase the value of the dollar