Key Senator Objects to Plan to Stop Fed Interest Payments to Banks

Key senator objects to plan to stop Fed interest payments to banks

Senator Tim Scott (R-SC), the chair of the Senate Banking Committee, said he opposes a plan to prohibit the Federal Reserve from paying interest on reserves to banks to help pay for President Donald Trump's tax package, according to a media report.

Key Senator Opposes Plan to Halt Fed Interest Payments to Banks

Senate Banking Committee Chairman Tim Scott said he opposes swift action on a proposal from Texas’ Ted Cruz that would bar the Federal Reserve from paying interest on reserves to banks to help pay for President Donald Trump’s tax and spending package.

The most important senator resists that the plan is to stop interest payments on banks

(Bloomberg) – Tim Scott, chairman of the Senate Bank Committee, said that he opposed rapid action on a proposal from Ted Cruz of Texas that would prohibit the Federal Reserve to pay interest on reserves to banks to help pay for President Donald Trump's tax and expenditure package. “Although the desire to return to the […]

'Financial Repression Is Coming,' Warns Lawrence McDonald As Ted Cruz Seeks To End $1.1 Trillion Fed Interest Payment Scheme

Market veteran Lawrence McDonald has a stark warning regarding a recent GOP proposal spearheaded by Sen. Ted Cruz (R-Texas) that calls for nixing federal interest payments to banks. What Happened: On Wednesday, McDonald, the founder of the newsletter The Bear Traps Report, posted on X, quoting a…