US banks warn Fed interest cut could force them to charge depositors
Leading
US banks have warned that they could start charging companies and
consumers for deposits if the US Federal Reserve cuts the interest it
pays on bank reserves.
Depositors already have to cope with
near-zero interest rates, but paying just to leave money in the bank
would be highly unusual and unwelcome for companies and households.
The
warning by bank executives highlights the dangers of one strategy the
Fed could use to offset an eventual "tapering" of the $85bn a month in
asset purchases that have fuelled global financial markets for the last
year.
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