Potential Fed nominee wants changes to interest rate policy

Judy Shelton
Photo courtesy Judy Shelton

US president Donald Trump’s latest potential Federal Reserve nomination, Judy Shelton, said she thinks the central bank should gradually bring to an end its policy of paying interest on excess reserves (IOER).

Shelton said the IOER distorts the financial system and stifles private sector entrepreneurialism. In an interview on Bloomberg TV, she urged the central bank to slowly phase the policy out over a one- to two-year period.  

“I would want to start to have a glide path to toward… moving

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: