Transparency needed as Fed pays banks $186 billion while operating at a loss

The Federal Reserve (“Fed” is a giant agency with the ability to manipulate and control the entire American economy. Our jobs, our financial resources, our savings, and in the end, are our lives – they are all subject to decisions taken at the Federal Reserve.

But federal reserve deliberations and operations occur behind closed doors.

It is time to know how the Federal Reserve takes its decisions. congress should take immediate steps to provide transparency for the American people.

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There is no other institution that has a lot of unrestricted power. Do not look beyond the unlimited power used by the Federal Reserve in response to the Covid-19 epidemic. Federal Reserve’s printed money, bought government -backed securities and exited huge amounts of money for favorite industries. These measures added approximately $ 5 trillion of debt to the public budget of the Federal Reserve.

In order to be clear, the representatives of the Federal Reserve only interested in transparency to the extent that it gives them a political cover. Because, for them, the federal reserve bank is the advantage of an advantage, not a mistake, and their leadership is a great advantage.

If I ask them, the accountability of the American people and the taxpayers who support their financial cards is already bad. From the point of view of the Federal Reserve, to question that this arrangement is somewhat harmful or dangerous.

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Our country is now more than $ 37 trillion of debt. It is not enough for a sufficient number of people in Washington to say “no” because they do not want to stop spending the money of others – “other people” as they are future generations of Americans who suffer from not defending the voices of the present as they ask for tomorrow’s money today.

The Federal Reserve has a share of responsibility for it, as its intrigues and treatment help to sustain this unusual situation, but with increasing difficulty every year.

Nobody pays attention to hundreds of billions of dollars paid by the Federal Reserve to banks unnecessarily to not lend money to consumers.

Nearly a century ago, the Federal Reserve has not paid any benefit for banks to hold federal reserves in these bank deposit funds, but all of this changed in the aftermath of the 2008 financial crisis.

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Paying interest to banks to hold federal reserve funds was originally to control inflation. From 2008 to 2016, the interest rate on the reserves was 0.25 %, and the average annual payments reached $ 5 billion.

But the situation soon became very different. The interest rate today is more than 4 %, and after that, the support of the Federal Reserve for Banks increased. To be clear, what this means is that the Federal Reserve has paid hundreds of billions of dollars to banks to not lend money to consumers.

If I ask them, the accountability of the American people and the taxpayers who support their financial cards is already bad. From the point of view of the Federal Reserve, to question that this arrangement is somewhat harmful or dangerous.

In 2022, the Federal Reserve paid nearly $ 60 billion to banks. In 2023, the FBI payments for banks rose to more than 176 billion dollars, and in 2024, the support of the Federal Reserve for Banks increased to about $ 186 billion. 44 % of these benefits are paid to foreign banks.

It gets worse. The federal reserve is not profitable and was not profitable for several years. In fact, I have said that the Consumer Protection Office, the Levichan Agency, which is receiving funding from the Federal Reserve, must be closed because the Federal Reserve has been confused since 2022.

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One of the main reasons that the Federal Reserve continued to work is confused about what its illiterate commitment to make these benefits payments, which are completely estimated and not required.

The Federal Reserve has the authority to restore reserve balance requirements and ensure that banks are not entitled to obtain these interest payments. Meanwhile, the Federal Reserve chooses through its policies to make its losses worse than it should be.

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Although the Federal Reserve no longer has profits and stops returning any profits to taxpayers by converting these funds to the treasury, it paid hundreds of billions of dollars to banks. Meanwhile, the country’s largest bank gets the largest part of the federal reserve payments.

Although it is difficult to determine and how much, because all of this is the secret that has been hidden by the Federal Reserve, and it may only be the top of the iceberg.

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The good news is that I am leading the charge against the mismanagement of the Federal Reserve Bank, and our ranks grow.

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On July 21, it was submitted “the end of the Grand Rescue law at the Federal Reserve, which will lead to the Federal Reserve’s benefit to large and foreign banks by prohibiting payment payment on reserve assets. Independent Fairmont for Senator Bernie Sanders notes this legislation to the wide call to end easy profits for banks on tax expenses.

Then I suggested legislation to audit the Federal Reserve, “Federal Reserve Transparency Law.” More and more numbers in the government are transferred to federal reserve accounting, and the momentum of transparency is built.

Now, in response to reports of hundreds of millions of dollars in cost excesses of what is now a $ 2.5 billion renewal of federal reserve offices, the dam has collapsed.

In 2022, the Federal Reserve paid nearly $ 60 billion to banks. In 2023, the FBI payments for banks rose to more than 176 billion dollars, and in 2024, the support of the Federal Reserve for Banks increased to about $ 186 billion. 44 % of these benefits are paid to foreign banks.

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On July 21, US Treasury Secretary Scott Payet indicated that we need to “examine the entire Federal Reserve Foundation and whether it was successful[.] Has the organization succeeded in its mission? … all this doctorate there, I don’t know what to do. ”

Without accountability and transparency, the Federal Reserve tampered with the economy and threatens resources. Reality cannot be denied. The urgency is real. The moment now. It’s time to check the federal reserve.

Republican Rand Paul Kentucky is represented in the Senate in the United States. He is the author of the book.The issue against socialism(Broads Books, October 2019).