Fed could use reserves payments to stimulate U.S. economy: paper

With interest rates near zero (in some cases negative), it really does boggle the mind how the Central Banks of the world will attempt to jump-start their economies. We are now surely charting course for the unknown, so should I say, in the direction of unintended consequences.

The Federal Reserve could push banks to lend more by paying Wall Street smaller returns on money stashed at the U.S. central bank when inflation is low, according to an academic paper presented on Saturday.

Source: Fed could use reserves payments to stimulate U.S. economy: paper

Comments

comments

Tagged with:

Leave a Reply

Your email address will not be published. Required fields are marked *