Obscure Fed Tool Used to Hammer Yellen for Enriching Banks

February 10, 2016 9:00 PM

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A tool Congress gave the Federal Reserve to control interest rates has become a hammer for lawmakers to bash the central bank.

Fed Chair Janet Yellen withstood bipartisan criticism at a congressional hearing on Wednesday over the policy of paying the largest financial institutions to keep more funds than required on deposit at the central bank. The Fed doled out $1.7 billion in interest on excess reserves -- known as IOER f...

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