A Note on Federal Reserve Policy Incongruencies

William Carlson^1*, Conway Lackman²

¹Duquesne University (ret.), Pittsburgh, PA, USA.
²Duquesne University (ret.) and Intl. Consulting Group, Pittsburgh, PA, USA.

DOI: 10.4236/me.2015.612116                

Abstract

The incongruencies of Federal Reserve (Fed) policy is demonstrated where the Fed proposes to raise interest rates on excess reserves claiming that generally rising rates that follow will help households increase interest income. The resulting slowing of the economy, however, will cause slowing employment and income gains which are likely to more than offset any rising interest income.

Keywords

Monetary Policy, Fed Interest Rate and Excess Reserves Policy

Conflicts of Interest

The authors declare no conflicts of interest.

References

[1]	http://www.bloomberg.com/new/articles/2013-04-15/fed-seenpayin
[2]	https://us-mg5.yahoo.com/neo/b/messge?sMid=10&fid-Inbox
[3]	Board of Governors of the Federal Reserve System (2013) Aggregate Reserves of Depository Institutions and the Monetary Base, 2013.