editor’s note: WTF??? when are these criminals going to be audited? why are their unfettered access to OUR WEALTH continuing?? DO NOT CONSENT.
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Authored by Mike Shedlock via MishTalk,
The Fed upped the interest it pays on excess reserves to 1.95% today. This is free money (taxpayer funded) to banks.
The Fed bumped up the interest it pays on excess reserves today to 1.95%. Currently, excess reserves sit at $1.894 trillion.
The math is simple enough. At the current rate, the Fed will hand over approximately $36.93 billion of taxpayer money to banks.
That assumes the status quo, but things will change.
Factors
- The Fed is shrinking its balance sheet slowly. That reduces excess reserves the Fed pays interest rates on.
- When the Fed hikes interest rates, it also increases the interest it pays on excess reserves.
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