Ted Cruz Proposes Major Fed Interest Payment Cuts Amid Market Concerns
TL;DR Summary
Senator Ted Cruz proposed ending the Federal Reserve's interest payments to banks, claiming it could save $1.1 trillion over ten years, a move supported by some conservatives but warned against by financial strategists due to potential market disruptions. The proposal aims to offset the costs of a large tax and spending package, with debates centering on the impact on liquidity and the federal deficit.
- Cruz Pitches $1.1 Trillion Cut to Fed Bank Payments for Trump Tax Bill Bloomberg.com
- Ted Cruz’s Fed Plan Is a Massive Distraction Bloomberg.com
- Effort to strip Fed of interest paying power seen likely to bring upheaval to markets Reuters
- Jeremy Siegel Backs Ted Cruz's Plan To End Fed Interest Payments On 'Excess Reserves,' Potentially Saving $2 Trillion In Deficits: 'Not A Trivial Concern' Yahoo Finance
- 'Financial Repression Is Coming,' Warns Lawrence McDonald As Ted Cruz Seeks To End $1.1 Trillion Fed Interest Payment Scheme Benzinga
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