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Check out the text of the FOMC minutes from April, last paragraph. Not only will interest be paid on reserves (by us no doubt), but the Fed will also be lowering reserve requirements again.
http://www.federalreserve.gov/moneta...es20080430.htm
bull market in gold and oil to continue. party on, garth.
http://www.federalreserve.gov/moneta...es20080430.htm
Following passage of the Financial Services Regulatory Relief Act of 2006, which will permit the Federal Reserve to reduce reserve requirements and to pay interest on reserves beginning in 2011, the staff had undertaken work to explore and evaluate alternative approaches to monetary policy implementation using these new authorities.