Mind The IOER---It's Not Minding The Fed

Internally, Fed economists saw the IOER adjustment as a small technical adjustment. But the continued upward pressure could change the rate calculus, as well as the extent of the balance sheet reduction. In a program that started in October 2017, the central bank is allowing a capped level of proceeds from its bond holdings to run off each month and is reinvesting the rest.





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