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

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