Bill > HR146

This bill aims to modify the Federal Reserve Act by prohibiting Federal Reserve banks from paying interest on excess reserves (IOER). Specifically, the bill would amend Section 19(b)(12) of the Federal Reserve Act to clarify that Federal Reserve banks can only pay earnings on required reserve balances that depository institutions are mandated to maintain, and explicitly forbid the payment of earnings on any other types of reserve balances. The key change is the insertion of language that prevents Federal Reserve banks from providing interest payments on surplus or additional reserves beyond the legally required amount. This modification could potentially impact how banks manage their reserve holdings and the financial incentives associated with maintaining excess reserves at Federal Reserve banks. The bill, if passed, would go into effect in 2025 and represents a targeted approach to changing the current rules governing interest payments on bank reserves.

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https://www.congress.gov/bill/119th-congress/house-bill/146/all-info