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Fed may cut interest on reserves next week: Morgan Stanley

Published 04/26/2019, 12:30 PM
Updated 04/26/2019, 12:31 PM
© Reuters.  Fed may cut interest on reserves next week: Morgan Stanley
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NEW YORK (Reuters) - The Federal Reserve may lower the interest it pays on excess reserves banks leave with it by 5 basis points at its April 30-May 1 policy meeting in a bid to prevent the federal funds rate from drifting higher, Morgan Stanley (NYSE:MS) analysts said on Friday.

This would mark the third such "technical" adjustment on the interest on excess reserves (IOER) following cuts last June and December.

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