Federal Reserve Ban on Paying Interest on Banks' Excess Reserves
This bill aims to stop the Federal Reserve from paying banks interest on money they hold above the legally required minimum. This change is designed to encourage banks to lend more money into the economy rather than keeping it deposited at the Fed. Citizens might see an indirect effect through potentially lower interest rates on loans and mortgages, increasing credit availability.
Key points
The Federal Reserve is prohibited from paying interest on bank reserves that exceed the mandatory minimum requirement.
The goal is to increase the money supply available for lending, potentially leading to lower borrowing costs for consumers and businesses.
Introduced
Citizen Poll