The necessary transparency as the Fed pays the $ 186 billion banks while operating at a loss

Thehe Federal reserve (Fed) is a Behemoth agency with the ability to manipulate and control the entire US economy. Our jobs, our finances, our savings and, in the end, our livelihoods – they are all subject to the decisions taken in the Fed.

But the Fed’s discussions and operations are happening behind closed doors.

It’s time to know how the Fed makes his decisions. Congress must take immediate steps to ensure transparency for the American people.

Four key assumes from Trump’s visit to the federal reserve with Powell

No other institution has such unverified power. Do not look farther from unlimited authority that the Fed uses in response to the Covid-19 pandemic. Fed printed money, bought government securities and allocated huge sums of money to the preferred industries. These actions added almost $ 5 trillion debt to the Fed’s balance.

To be clear, the Fed’s representatives are only interested in transparency as long as they give them political coverage. Because for them, the opacity of the Fed is a characteristic, not a mistake and their guidance considers the secrecy as a great advantage.

If you ask them, the accountability of the American people and the taxpayers who support their financial home from cards is actually bad. From the point of view of the Fed, even if this agreement is questioned, it is somehow harmful or dangerous.

The chief of the Ministry of Finance requires an internal review of Fed Reserve, exploding his “imprint” in the economy

Our country is already over $ 37 trillion debt. Not enough people in Washington are ready to say no because they do not want to stop spending other people’s money – “other people” are future generations of Americans who are defenseless against the voices of the present while they want tomorrow’s money today.

The Fed has a share of responsibility for this, as their machinations and manipulations help to perpetuate this unstable state of affairs, but with increasing difficulties every year.

No one is paying attention to the hundreds of billions of dollars, which Fed is unnecessarily paid to banks so as not to borrow consumers.

For nearly a century, the Fed has not paid interest in banks for conducting federal reserves in the deposit boxes of these banks, but all this has changed since the financial crisis in 2008.

Trump’s Big Beautiful Account Needs ‘Thick Grand Shoot’ to end our dangerous dependence on debt

Payment of interest rates to the Fed’s funding banks was originally intended to control inflation. And from 2008 to 2016, the interest rate on reserves was at the closer of 0.25%, and annual payments average $ 5 billion.

But the situation quickly became dramatically different. Today’s interest rate is over 4% and subsequently the Fed’s subsidy to banks jumped. To make it clear what this means is that the Fed has paid hundreds of billions of dollars to banks so that they do not borrow consumers.

If you ask them, the accountability of the American people and the taxpayers who support their financial home from cards is actually bad. From the point of view of the Fed, even if this agreement is questioned, it is somehow harmful or dangerous.

In 2022, Fed paid nearly $ 60 billion to banks. In 2023, Fed’s payments to banks increased to over $ 176 billion, and in 2024 the Fed’s subsidy for banks increased to about $ 186 billion. And 44% of these subsidies are paid to foreign banks.

It worsens. Fed is not profitable and has not been profitable for several years. Actually I claim that Consumer Financial Protection Bureau, The Leviathan agency, which is known to receive funding from the Fed, is to be closed as the Fed has been working at a loss since 2022.

Billionaires flourish in the Biden era as Fed became the “Income Inequality engine” engine driven by Covid’s policies: Expert

One of the main reasons why the Fed continues to work with loss is due to his economically illiterate commitment to making these interest payments that are completely discretionary and not required.

The Fed has the authority to reimburse the requirements for a balance sheet reserve and to ensure that banks will not be entitled to these interest payments. In the meantime, the Fed chooses through his policies to worsen his losses than they should be.

Although the Fed no longer has profits and ceased to return the profits to taxpayers by transferring these funds to the Ministry of Finance, she still paid hundreds of billions of dollars to banks. Meanwhile, the largest banks in the country receive the bigger part of the Fed’s payments.

Although it is difficult to say who and how much, because all this is a secret preserved by the Fed, and this can only be the tip of the iceberg.

Invisible Tax: Government debt crushes your finances

Taxpayers need to know why the Fed cannot afford policies that are helpful to them, but can afford hundreds of billions of banks payments.

The good news is that I am raising the accusation against the poor governance and the secret of the Fed and our ranks are increasing.

Get Fox Business on the go by clicking here

On July 21, I introduced End Big Bank Baint Act that will end Federal reserveis a subsidy for large and foreign banks, prohibiting the payment of interest on reserve balances. Vermont Independent Saint. Bernie SandersThe support of this legislation is indicative of the widespread appeal of the termination of easy profits for banks at the expense of taxpayers.

I then offered the Fed Audit Audit legislation, “Federal reserve Transparency Law. “More and more figures in the government are moving to hold a Fed responsible and the inertia for transparency is being built.

Now, in response to reports of hundreds of millions of dollars exceeding the cost of what is now renovating $ 2.5 billion to the Federal Reserve offices, the dam has broken.

In 2022, Fed paid nearly $ 60 billion to banks. In 2023, Fed’s payments to banks increased to over $ 176 billion, and in 2024 the Fed’s subsidy for banks increased to about $ 186 billion. And 44% of these subsidies are paid to foreign banks.

Click here to read more about Fox Business

The US Secretary of the Ministry of Finance Scott Picked on July 21 that we need to “explore the entire Federal Reserve institution and are they successful (.) The organization has succeeded in its mission?… All these doctoral students there, I don’t know what they are doing.”

Without accountability and transparency, Fed manipulates the economy and waste resources. The reality is indisputable. The emergency is real. The moment is now. It’s time to audit Fed.

The Republican Rand Paul is a kentucky in the Senate of the United States. He is the author of the book “The case against socialism“(BroadSide Books, October 2019).