Republican Sens. Rick Scott of Florida and Ted Cruz of Texas have introduced legislation to stop the Federal Reserve from paying banks interest on their reserves, an action they say wastes upward of billions of dollars.
The Fiscal Accountability for Interest on Reserves Act was introduced Wednesday.
According to data cited by the senators, the Fed paid more than $186 billion to banks through the Interest on Reserve Balances program in 2024 alone. An additional $1 trillion is expected to be paid out over the next 10 years to banks.
The senators said the “grossly mismanaged” Fed has been operating at a loss since 2022, with no money remitted to the U.S. Treasury. They say that’s caused by “wasting billions on interest payments to banks and multibillion-dollar building renovations.”
Rep. Warren Davidson, Ohio Republican, introduced a companion measure in the House.
Mr. Scott said in a statement, “The Federal Reserve under Jay Powell’s leadership has been a failure to the American people — it has failed to provide the stability, transparency or accountability Americans deserve from the central bank, and has failed to use dollars in the best interests of the American people.
“Jay Powell has already downplayed inflation, rubber-stamped reckless policies, and has fostered a culture of corruption and mismanagement costing taxpayers trillions, while putting the interests of all others before American families.”
Click this link for the original source of this article.
Author: Dillon B
This content is courtesy of, and owned and copyrighted by, https://www.offthepress.com and its author. This content is made available by use of the public RSS feed offered by the host site and is used for educational purposes only. If you are the author or represent the host site and would like this content removed now and in the future, please contact USSANews.com using the email address in the Contact page found in the website menu.
