Interest on Excess Reserves: Monetary Policy Beyond QE
While the announcement of a new policy of quantitative easing has revived an interest in monetary policy, one crucial Fed policy has remained outside of the spotlight: its policy of paying interest on...
View ArticleQE Is Untested and Ineffective
Click here for a printer-friendly version of this articleThese issues are the crux of the debate and should be argued thoroughly, especially since U.S. is not in a financial emergency. By undertaking...
View ArticleWith Growth Strengthening, Fed QE Policy In Disarray
Kevin Warsh has resigned after five years on the Fed’s Board of Governors. In his resignation letter to President Obama, he expressed the honor he felt to have served at a time of great consequence and...
View ArticleCharles Plosser's Keynote Speech at the SOMC Symposium
Click here for a printer-friendly version of Professor Plosser's remarks.EXITShadow Open Market CommitteeMarch 25, 2011New York, New YorkCharles I. PlosserPresident and Chief Executive OfficerFederal...
View ArticleFed Holds 92% of Bank Cash, Pushes Bank Reserves to 25% of Deposits
We think U.S. and global growth prospects are deteriorating under the weight of bad monetary policy, making equities vulnerable until policies improve. Today’s PPI declined 0.2% month-over-month for...
View ArticleFed Normalization Possible; Non-Banks Adding Liquidity
Wednesday’s Wall Street Journal front page has an article on non-bank lending to traditional banking areas. “He figured a bank would put him through weeks of aggravation, then reject him. He turned...
View ArticleFed Briefly Doubles Its Borrowings Through Reverse Repos; Good Step
The Federal Reserve is building the tools it will need to exit from its extraordinary monetary policy. Just as the market was against the Fed tapering, it will worry periodically about rate hikes, but...
View ArticleDysfunctional Congress Takes Aim at the Fed
Teaser: Anyone expecting the mild-mannered Federal Reserve Chairman to be treated with kid gloves at her semi-annual congressional testimony last week was mistaken. On the Senate side, Massachusetts...
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