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Less talked about than QE, the Fed may be contemplating cutting the interest paid on reserves to...

Less talked about than QE, the Fed may be contemplating cutting the interest paid on reserves to 0% (from 0.25% currently), suggests former Fed economist Ward McCarthy. The amount banks have deposited in Fed vaults has ballooned to $1.49T from $2.4B in 2007. Cutting the rate to zero might force the cash into the economy (or it might destroy the money market industry).
Comments (1)
  • bbro
    , contributor
    Comments (9483) | Send Message
     
    More of the latter,,,,look at where Baa yields are...what does that tell
    you about corporate loan demand??....
    30 Jul 2012, 07:10 AM Reply Like
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