Authorizing the Federal Reserve to pay explicit interest on contractual clearing balances and excess reserve balances, in addition to required reserve balances, could potentially provide a demand for voluntary balances that would be stable enough for monetary policy to be implemented effectively through existing procedures without the need for required reserve balances.
Other than its participation in the partnership, the core mandates of the Bank, which are price and financial stability, demand that we explain to the public all that we do to achieve these mandates. In this regard, CBK takes up available opportunities to disseminate financial knowledge to the public.