<html><body><p>Paying interest on reserve balances enables the Fed to break the strong link between the <a href="https://quotes.tuteehub.com/tag/quantity-8544" style="font-weight:bold;" target="_blank" title="Click to read more quotes about QUANTITY">QUANTITY</a> of reserves and the level of the <a href="https://quotes.tuteehub.com/tag/federal-9914" style="font-weight:bold;" target="_blank" title="Click to read more quotes about FEDERAL">FEDERAL</a> funds <a href="https://quotes.tuteehub.com/tag/rate-2362" style="font-weight:bold;" target="_blank" title="Click to read more quotes about RATE">RATE</a> and, in turn, allows the Federal Reserve to control <a href="https://quotes.tuteehub.com/tag/short-term-2063" style="font-weight:bold;" target="_blank" title="Click to read more quotes about SHORT-TERM">SHORT-TERM</a> interest <a href="https://quotes.tuteehub.com/tag/rates-8882" style="font-weight:bold;" target="_blank" title="Click to read more quotes about RATES">RATES</a> when reserves are plentiful.</p></body></html>

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Paying interest on reserve balances enables the Fed to break the strong link between the QUANTITY of reserves and the level of the FEDERAL funds RATE and, in turn, allows the Federal Reserve to control SHORT-TERM interest RATES when reserves are plentiful.

Author - Janet Yellen Subject - Control

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Paying interest on reserve balances enables the Fed to break the strong link between the QUANTITY of reserves and the level of the FEDERAL funds RATE and, in turn, allows the Federal Reserve to control SHORT-TERM interest RATES when reserves are plentiful.

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Paying interest on reserve balances enables the Fed to break the strong link between the QUANTITY of reserves and the level of the FEDERAL funds RATE and, in turn, allows the Federal Reserve to control SHORT-TERM interest RATES when reserves are plentiful.

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