A Dual-Rate Fed Policy for Productivity-Based Growth

Aligning Monetary Stability with Productive Growth

Policy White Paper

Since 1913, the United States has operated under a mono-rate monetary system in which a single short-term rate, set by the Federal Reserve, dictates the cost of credit across all sectors. While this approach promotes macroeconomic stability and inflation control, it also suppresses business agility and forward momentum in productivity gains by failing to make capital accessible, especially to small enterprises that drive innovation and job creation. In effect, a one-size-fits-all Fed rate cultivates stagnation.

What if a tiny, surgical adjustment rewarded productivity separately, leaving macro-stability untouched, creating continuous forward momentum with zero impact on existing policy or strategy? (read more)