Fed Outlines Future Tightening Plans

by Benjamin Domenech on 10:03 am February 8, 2010

What does the Fed plan to do if a comeback begins? “The centerpiece will be a new tool Congress gave the central bank in October 2008: an interest rate the Fed pays banks on money they leave on reserve at the central bank. Known as “interest on excess reserves,” this rate is now 0.25%.”