8/25/2010

Officials at the Federal Reserve are unlikely to reduce the interest rate the central bank pays on banks' excess reserves. The rate is set at 0.25%, and policymakers said reducing the rate further would have a limited stimulative effect. "It's kind of a dead-end policy; you can only do it once," said James Bullard, president of the Federal Reserve Bank of St. Louis. "I don't think it would be particularly effective."

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