# Prof. Kim Schoenholtz on whether the Federal Reserve will alter interest rates

1 Faculty News May 23, 2013 ![MarketWatch logo](/sites/default/files/styles/246w/public/assets/images/marketwatch%20logo.jpg?itok=pHUVfozf)>

Excerpt from [MarketWatch](http://on.mktw.net/13MJBxD) -- "[Schoenholtz](http://www.stern.nyu.edu/faculty/bio/kim-schoenholtz) cautioned that the Fed has zero experience with using the interest rate of reserves as the primary tightening tool and doubts will persist until it works in practice. 'It works in theory but until we see it in actual practice we don’t know if it is useful,' he said."

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