US Fed may tweak way of transmitting policy rate into banking system

Fed Chairman Jerome Powell suggested a technical adjustment to the so-called interest on excess reserves rate

The US Federal Reserve looks set to make its second adjustment in six months to the systems it uses to control interest rates as it appears on course for yet another rate increase at its meeting next month.

Minutes released on Thursday of the Fed's latest two-day policy meeting on Nov. 7-8 showed the Fed is also debating whether its ability to ensure its policy rate is effectively transmitted into the banking system is best achieved in an environment where banks' stockpiles of excess reserves at the central bank are abundant or scarce. Excess reserves are those funds deposited at the