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Why the Fed Pays Interest on Banks' Reserves

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  • Doreen Fagan

Abstract

Do you have a savings account that earns interest? That's similar to how the Federal Reserve acts as the "bankers' bank," an important function.

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Handle: RePEc:fip:l00100:102472
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File URL: https://www.stlouisfed.org/open-vault/2018/april/why-fed-pays-interest-banks-reserves
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File URL: https://fraser.stlouisfed.org/title/open-vault-9398/fed-pays-interest-banks-reserves-687988
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