The Federal Reserve’s stance on monetary policy is offering no “exciting incentive” to savers, said Charles Evans, president of the Federal Reserve Bank of Chicago.
Evans, who votes on policy this year, spoke during a panel discussion at the bank today. The central bank has kept the target for the federal funds rate, or overnight lending rate between banks, at zero to 0.25 percent since December 2008.
“When I think about current monetary policy, we’re not exactly helping provide an exciting incentive to everyone on their savings because interest rates are very low at the moment,” Evans, 53, said in the discussion held as part of the city’s 10th annual Money Smart Week.
Evans also said that regulation “can only take us so far” in protecting consumers, and that consumers themselves should play an important role.
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