Fed’s New Tools
We’ve entered an unpredictable period in the history of monetary policy but there are lessons we can learn from the past.
Click here to read this article at The Motley Fool.
“Federal Reserve Chair Janet Yellen ran into a bipartisan buzzsaw today over why the Federal Reserve is paying interest to banks on the trillions of dollars in reserves that they hold at the Fed. She tried repeatedly to supply the central bank’s reasoning but didn’t seem to make a dent.”Please, please explain,” Representative Maxine Waters… Read More
NPR’s Planet Money gives an excellent easy-to-understand breakdown of the Fed’s new approach to monetary policy in this 15 minute audio segment. Click here to listen.
Federal Reserve officials now seem open to deploying negative interest rates to combat the next serious recession even though they rejected that option during the darkest days of the financial crisis in 2009 and 2010. “Some of the experiences [in Europe] suggest maybe can we use negative interest rates and the costs aren’t as great… Read More