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Take A QuizA higher IOER RATE encourages banks to raise the interest rates they charge, putting upward PRESSURE on market interest rates regardless of the level of reserves in the BANKING sector. While adjusting the IOER rate is an effective way to MOVE market interest rates when reserves are plentiful, federal funds have GENERALLY traded below this rate.
Posted on 27 Nov 2024, this text provides information on Banks related to Janet Yellen. Please note that while accuracy is prioritized, the data presented might not be entirely correct or up-to-date. This information is offered for general knowledge and informational purposes only, and should not be considered as a substitute for professional advice.
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