CARLI DIGITAL / AP BUILDING: The head of the International Monetary Fund says his bank will keep on cutting payrolls to offset the economic stimulus plan.
The bank will also keep on lowering rates to protect savers and businesses.
The Fed’s efforts to stimulate the economy have been a huge success for Wall Street.
They helped revive a stagnant economy and pushed down unemployment.
It also put millions of Americans back to work and put the brakes on the financial crisis.
But as the Fed continues to press its plan to stimulate lending, some of its most powerful bankers have been cutting back.
In the first nine months of the year, the head of Wells Fargo & Bank of America (WFC) cut the average employee’s salary by 15% while the average wage for its retail employees fell 7.5%.
And in the fourth quarter of this year, Wells Fargo said it would cut its retail payroll by 8.4% to keep pace with inflation.
And in March, Wells said it was cutting about 25,000 jobs.
On Tuesday, Bank of Japan Governor Haruhiko Kuroda said his central bank is expected to keep its rate near zero for the foreseeable future, while other officials, including Treasury Secretary Steven Mnuchin, are calling for a rate hike soon.
WSJ reporter Chris Suki reports.
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