Markets

Yellen grilled on paying interest on excess reserves

Cheapshots abound

The Fed pays banks interest on overnight deposits in order to raise rates off the floor. Of course, it means the Fed is 'paying' the banks. Of course, the Fed collected $600B from 2008-2015 but now that the money is flowing the other way, Congress is grandstanding.

The first two people to take her to task are Hansarling and Waters, both of whom voted in 2006 to give the Fed power to pay in 2006.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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