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Federal Reserve Dividend Reduction Deserves Thorough Debate

In July, the U.S. Senate introduced a plan to offset new highway spending by reducing the dividend that the Federal Reserve pays to member banks. While it is still unclear exactly where this idea originated, an anonymous Democratic staffer recently referred to the dividend as “an unnecessary and wasteful subsidy.”[1] It now appears that the dividend reduction will go forward even if it offsets outlays other than highway spending.

The Fed Needs Reform: Six Changes for Monetary Policy

The Fed s Failure as a Lender of Last Resort: What to Do About It

Money and Banking Provisions in the Financial CHOICE Act: A Major Step in the Right Direction

House Financial Services Committee Chairman Jeb Hensarling (R–TX) has released a discussion draft of a major regulatory reform bill called the Financial CHOICE Act.[1] This legislation would replace large parts of the 2010 Dodd–Frank Wall Street Reform and Consumer Protection Act. Key sections of the bill would reduce the risk of future financial crises and bailouts, and would allow investors and consumers to prosper by freeing them from centralized regulation and micromanagement.

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