The Federal Reserve's strategic adjustments to the Federal Funds Rate have a substantial influence on the money supply within the economy. When the Federal Reserve opts to lower the rate, it makes borrowing more cost-effective for banks, which stimulates heightened lending, spending, and investment. This creates an expansion of the money supply, because businesses and consumers are enticed by the more favorable terms for borrowing. On the other hand, when the Federal Reserve raises the Federal Funds Rate, it elevates the cost of borrowing, which causes a reduction in lending activities. The rise in interest rates dissuades spending and investment, resulting in a contraction of the money supply. Thoughts on this comment