Quantcast
Are you getting the best rate from your broker?
Compare your broker's rates now to find out if you can save money

Choose your broker below
Welcome to Dividend.com. Please help us personalize your experience.

Select the one that best describes you
ALERT

Memorial Day Sale: Dividend.com Premium Price Slashed — Redeem Now

Dividend logo

There’s such a simple, easy and powerful way to get the economy booming again that I’m surprised no one has advocated it before.

Well, maybe the underlying concept – helicopter money – has previously been toyed with, but policymakers always make everything so complicated. Here’s the idea in a nutshell: a Federal Reserve credit card.

How the Card Would Work

The thought is that the Federal Reserve should issue and distribute its own credit card – in both Visa (V ) and MasterCard (MA ) formats to be fair to the credit card oligopoly. The card would be a plain ‘vanilla’ kind without cashback privileges or bonus miles, or any other perks or features to eat into the business of other credit cards. Issuing a credit card would probably break a few rules, but the Fed makes its own rules anyway.

The best part of the Fed-Cred card, which everyone over 21 could receive, is that any credit balance would be charged interest at the federal funds rate: the interest rate at which banks and credit unions lend reserve funds to each other to meet Fed requirements. Currently, that rate is effectively 0.4%, which is within the Fed’s target rate range of 0.25% to 0.5%.

To read the Full Story, Go Premium or Log In

Popular Articles

News

Bank of America Leads 175 Stocks Going Ex-Dividend This Week

There are 175 stocks going ex-dividend this week starting Monday, May 29. For income investors...

News

PepsiCo Increases Dividend by 7%

Each day, companies across the globe announce upcoming dividend payouts. In our Dividend Payout...

Premium Shutterstock 472583920
News

The Market Glance for May 29: Nonfarm Payrolls Headline Memorial Day Week

Investors are celebrating the unofficial kickoff of summer this week, a period normally...