Correct answer: Americans struggling to pay higher home and car interest rates.
President Jimmy Carter struggled against a bad economy in the United States during his time in office (Jan, 1977- Jan, 1981). When he entered office, the country was experiencing "stagflation" -- a combination of inflation and minimal economic growth. The actions of the Federal Reserve Board, under chairman G. William Miller, contributed to further inflation problems. The inflation rate went from 5.8% in 1976 to 7.7% in 1978. That meant that interest rates for home loans and car loans for American consumers got steeper and more difficult to afford. Then in 1979, the oil crisis hit as world oil production dropped in the wake of the Iranian Revolution. In 1979, inflation in the US went up to 11.3%. That only made matters worse.
In 1979, President Carter replaced Miller as chairman of the Federal Reserve, appointing Paul Volcker in his place. Volcker continued to serve in that role under the Reagan administration also, and played a large role in bringing inflation back under control.
