In March 2020, weekly unemployment claims soared in the US economy. It went from 282,000 on March 14, 2020 to 6,648,000 on March 28, 2020. The link below provides a graphical representation.

Link(Links to an external site.)

Assuming that all variables in the Fisher equation are positive, what would you expect the FOMC (FED) to do given the above information on unemployment?

increase the FED funds rate

peg the USD to the Euro

keep the FED funds rate at the level of March 2nd, 2020

decrease the FED funds rate