When Fed locks up funds, small businesses suffer

17 septiembre 2015

When the Federal Reserve raises interest rates to slow down a speeding economy — effectively raising the price of money — banks often sell down their stockpile of securities to keep the financial assembly lines going. That’s much like a widget-building company might rely on a warehouse of raw materials when prices rise.But according to newly published research, federal accounting rules can padlock those warehouses, particularly hurting small banks and their customers.