Contrary to others’ opinion, interest on excess reserves is part of the Federal Reserve’s monetary policy that serves to reduce volatility and encourage growth.
Loan demand disappointed as optimism for economic growth under President Trump gave way to uncertainty over the prospects for regulatory relief and tax reform. Credit quality held up, but the retail and health care sectors have become potential trouble spots. Here’s a recap drawn from banks’ quarterly earnings calls.
After such a period of collective euphoria following the November election, how does the manager of a large institution explain a declining stock price to investors?
Monetary policy was intended to act as an accelerant for an economy in recession, and did in fact accomplish that goal early on; however, its benefits have waned, if not reversed, over time.
Negative interest rate policies have not been shown to speed up spending or borrowing. In some cases, countries with such policies have seen their savings rates continuing to climb.
