Banks Central to Inflation-Fighting Plan

Sloan, Steven
February 2010
American Banker;2/11/2010, Vol. 175 Issue 23, p1
Trade Publication
The article discusses plans by U.S. Federal Reserve chairman Ben Bernanke for withdrawing liquidity from the U.S. financial system. Rather than manipulate the federal funds rate, Bernanke may choose to increase the rate of interest the Fed pays on reserves kept on deposit with it by U.S. banks. Higher interest rates will attract more reserves, thus diminishing loan volume.


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