-
Big Question for Fed Is Not When, But How To Raise Rates
Minutes released by the Federal Reserve of its March policy meeting were a reminder that the central bank could face real operational challenges when it decides to start raising short-term interest rates. As part of its bond-buying programs, the Fed has flooded the banking system with $2.7 trillion of funds known as reserves. Bank reserves are like a dollar in your pocket – they pay no interest. This abundance of funds is a giant weight keeping short-term interest rates near zero. When it comes time to raise interest rates the Fed will need to either a) eliminate those reserves or b) pay a higher interest rate than ... (full story)
- Comments
- Subscribe
- Comment #1
- Quote
- Apr 9, 2015 10:31am Apr 9, 2015 10:31am
- Guest
- | IP XX.XXX.81.38
- Comment #2
- Quote
- Apr 9, 2015 10:49am Apr 9, 2015 10:49am
- Thurira
- | Joined Mar 2015 | Status: Member | 93 Comments
- Comment #3
- Quote
- Apr 9, 2015 11:20am Apr 9, 2015 11:20am
- bd pips
- | Joined Oct 2012 | Status: Member | 82 Comments