Fed Meyer backs reserve interest, Treasury against

Federal Reserve Governor Laurence Meyer on Mar 13, 2001 reiterated the Fed's support for legislation that would allow it to pay interest on the reserves that banks are required to maintain with the central bank. Meyer did not mention interest rate policy or the economy in testimony prepared for delivery to the House of Representatives financial institutions subcommittee.

"The Board continues to strongly support legislative proposals to authorize the payment of interest on demand deposits and

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