The NCBA has joined in a letter to Senate Majority Leader John Thune (R-SD) and Senate Minority Leader Chuck Schumer (D-NY) that urges them to reject an amendment by Senator Rand Paul (R-KY) to the National Defense Authorization Act. Senator Paul is seeking to eliminate the payment of interest on bank reserves held at the Federal Reserve.

The letter states:

“These modest incentives, similar to paying interest on Treasury bills, support financial stability, ensure liquidity in our foundational interbank payment system, and create an important link in the chain of monetary policy transmission. Eliminating interest on reserves would not reduce federal spending, but it would disrupt the important work underway to bring down interest rates and disproportionately harm small banks, undermining their ability to lend into their communities.”

Author: sdbrownlow

Student of Design