End the “cut IOR to zero” Idiocy by PRAGMATIC CAPITALISMNovember 18, 2013April 17, 20200142 The latest Fed flavor of the week among sell side strategists is for IOR “interest on reserves” to be reduced from 25bps to 0. This idea is not only misguided, but the Fed has essentially said themselves that it wouldn’t be a good idea.