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