End the Fed’s Big Bank Bailout Act
Congress targets Fed payments to banks by banning interest on reserve balances
Stalled
No legislative action in over 90 days.
Legislative Progress
Key Points
- This bill would stop Federal Reserve banks from paying earnings (interest) on money banks keep parked at the Fed.
- Supporters argue this would reduce what they see as a subsidy to big banks and could push banks to use more money for loans instead of holding it at the Fed.
- Banks could earn less from simply holding balances at the Fed, which may change how they manage cash and could affect some bank profits.
- The change could ripple into how short-term interest rates are managed, since paying interest on these balances is one tool the Fed uses to steer rates.
Impact Analysis
Personal Impact
How this policy affects specific groups of people
Milestones
Committee on Homeland Security and Governmental Affairs. Hearings held.
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in Senate
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
News
No related news coverage found for this legislation yet.
Source Information
Document Type
Congressional Bill
Official Title
End the Fed’s Big Bank Bailout Act
Data Sources
Sponsor
Cosponsors
(1)Analysis generated by AI. Always verify with official sources.