In an article in The Guardian titled “The Fed has quietly ended its stimulus. Now the hard work really begins,” Ann Owen, the Henry Platt Bristol Professor of Economics, discussed how banks had benefited from the Federal Reserve’s quantitative easing program and how banks would continue to benefit from the Fed’s decision to end that program.
In the Oct. 29 article, Owen said, “They’ve benefitted from the Fed’s monetary accommodation, because if the economy is stronger, they’re stronger.” There are three ways the Fed will continue to pay banks higher interest rates, she explained in the article. All of them center around controlling bank reserves.
