TITLE:
A Note on Federal Reserve Policy Incongruencies
AUTHORS:
William Carlson, Conway Lackman
KEYWORDS:
Monetary Policy, Fed Interest Rate and Excess Reserves Policy
JOURNAL NAME:
Modern Economy,
Vol.6 No.12,
December
21,
2015
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.