America's economic growth depends on ports for a competitive edge in exports and for the flow of imported goods that bolster Americans' paychecks. The costs incurred during slowdowns at U.S. ports, recent and otherwise, highlight the considerable importance of ports to the U.S. economy and the need to reform U.S. port labor law. Indeed, if America is to reap the benefits of the two major new free-trade deals currently under negotiation, the Transatlantic Trade and Investment Partnership (TTIP) and the Trans-Pacific Partnership (TPP), U.S. ports must be open for business.
The Federal Reserve should fix the interest on reserves floor for the federal funds rate to facilitate the normalization of interest rate policy without interfering in financial markets. Instead, the Fed's intention to employ reverse repurchase agreements to establish a funds rate floor inserts the Fed into money market arbitrage and violates the minimum intervention principle of central banking.