Fed Is on 'Pretty Steady Path,' Wells Fargo's Schumacher Says

The video discusses the Federal Reserve's steady approach to interest rate hikes amidst a tumultuous market. It highlights the Fed's plans to continue raising rates, aligning with their projections, and the potential impact on the market. The concept of interest on excess reserves is explained, emphasizing its importance in maintaining the target range for Fed funds. Concerns about the right level of excess reserves and their effect on the banking system are also addressed, noting the experimental nature of finding the optimal balance.

What is the significance of the effective rate mentioned in the text?

What experimental process is suggested for determining the right level of excess reserves?