The proposed Fiscal Accountability for Interest on Reserves Act, or FAIR Act, aims to remove the Federal Reserve's statutory authority to pay interest on balances held by depository institutions. Specifically, it amends Section 19(b) of the Federal Reserve Act by striking paragraph (12) , which currently grants the Federal Reserve this power. This legislative change would effectively prevent the Federal Reserve from compensating banks for the reserves they hold at Federal Reserve Banks. The amendment is designed to become effective 180 days following the date of the Act's enactment, allowing a transition period for affected institutions.