'I Just Don't Want the Fed to Mess Things Up,' Says Potential Fed Nominee Judy Shelton

The transcript discusses the role of the Federal Reserve in economic policy, debating whether it should take a more activist approach. Concerns are raised about the Fed's interventionist policies, particularly the manipulation of interest rates and the practice of paying interest on excess reserves. These actions are seen as potentially distorting the economy, affecting private sector entrepreneurship, and providing banks with incentives that may not align with broader economic goals.

Why might it be problematic for banks to earn interest from the Federal Reserve without passing it on to depositors?

What is meant by a 'glide path' in the context of Federal Reserve policy adjustments?