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Interest Payments to Enhance Monetary Policy, Says Fed's Bernanke to Pelosi |
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US Economy |
Written by CEP News |
May 16 08 20:19 GMT |
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(CEP News) Endeavouring to be able to make interest payments on commercial-bank reserves three years early in an effort to enhance monetary policy, Federal Reserve Chairman Ben Bernanke reportedly sent a letter to that effect in an attempt to appeal to House of Representatives Speaker Nancy Pelosi.
The Fed doesn't have congressional authorization to make such interest payments until October 2011. "Congress recognized that payment of interest on reserves would contribute to the efficiency of the financial system," Bernanke wrote. "We recommend that the date be changed to make the legislation effective immediately." By Ryan Szporer,
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, edited by Nancy Girgis,
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