End the Fed’s Big Bank Bailout Act

This proposed legislation, titled the "End the Fed's Big Bank Bailout Act," aims to significantly amend the Federal Reserve Act. Its central provision is to prohibit Federal Reserve banks from paying earnings on any balances maintained by or on behalf of depository institutions.

Specifically, the bill would strike and replace paragraph (12) of Section 19(b) of the Federal Reserve Act. This change would ensure that no interest is paid on these reserve balances, thereby altering a fundamental aspect of how the Federal Reserve interacts with commercial banks and manages monetary policy.