Rick Scott’s FAIR Act cries foul over Fed paying interest on bank reserves

Rick Scott is enjoying the 'best job in the world.'

Rick Scott has been one of the most outspoken members of the U.S. Senate when it comes to the Federal Reserve.

On a day when the nation’s central bank again opted not to reduce interest rates despite President Donald Trump’s pleadings, the Naples Republican again took aim at what Jerome Powell and the Fed he leads are doing.

This time around, he’s targeting “their ability to pay interest to banks on reserves” via the Fiscal Accountability for Interest on Reserves (FAIR) Act. To put that practice in perspective, Scott’s office says $186 billion flowed from the Fed to banks last year alone.

Scott called for an audit just last week, and has urged Powell to step down.

He reiterated his central argument about the central bank Wednesday, claiming the Fed chair “has already downplayed inflation, rubber-stamped reckless policies, and has fostered a culture of corruption and mismanagement costing taxpayers trillions, while putting the interests of all others before American families.”

“We must force change at the Federal Reserve to put families’ best interest first, bring accountability to the Federal Reserve, and restore fiscal sanity to the nation – my FAIR Act is a great step and I urge my colleagues to pass this ASAP,” Scott added.

Scott’s bill is co-sponsored by Texas Sen. Ted Cruz.

“The Federal Reserve’s authority to pay interest on reserves rewards big banks — including large foreign banks — at the expense of all Americans. The FAIR Act replaces this authority—reducing the deficit, allowing more small businesses to access capital, and putting the Fed back on a path of fiscal responsibility. The Fed should not be in the business of increasing foreign banks’ profits, and I strongly urge my colleagues to pass this bill without delay,” Cruz said.