The FAIR Act would eliminate the Federal Reserve's authority to pay interest on reserve balances that banks hold at the Fed. Currently, the Federal Reserve can pay interest on these reserves, which affects how banks manage their cash and influences broader monetary policy. By removing this provision from the Federal Reserve Act, the bill would change how the central bank operates and potentially affect the financial system's money supply and interest rates. The change would take effect 180 days after the bill becomes law. The legislation was introduced by Senators Scott of Florida and Cruz in July 2025 and has been referred to the Senate Committee on Banking, Housing, and Urban Affairs.
Take Action
Your position
Add a comment
to comment on this bill.
Annotate the text
Highlight any passage on the Summary or Full Text tab to attach a note. Annotations appear on the Annotations tab.