IOER

Ioer stands for Interest On Excess Reserves. It is a type of interest that banks can earn if they have extra money in their accounts that they don't need to make loans or other investments with. When the bank has 'excess reserves', the Federal Reserve (the US central bank) pays the bank interest on the extra money. This is called Ioer. The Interest On Excess Reserves rate is set by the Federal Reserve to help control the money supply in the economy. Ioer helps the Federal Reserve lower the cost of borrowing money for businesses and individuals, which can help keep prices from rising too much.