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


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Posted on 01 Dec 2024, this text provides information on Control 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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