A Note on Federal Reserve Policy Incongruencies

DOI: 10.4236/me.2015.612116   PDF   HTML   XML   2,193 Downloads   2,631 Views  

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.

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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] 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.

  
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