A Note on Federal Reserve Policy Incongruencies


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.

Share and Cite:

Carlson, W. and Lackman, C. (2015) A Note on Federal Reserve Policy Incongruencies. Modern Economy, 6, 1235-1239. doi: 10.4236/me.2015.612116.

Conflicts of Interest

The authors declare no conflicts of interest.


[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.

Copyright © 2023 by authors and Scientific Research Publishing Inc.

Creative Commons License

This work and the related PDF file are licensed under a Creative Commons Attribution 4.0 International License.