TED CRUZ ‘My legislation, the FAIR Act, returns the Fed to the way it operated for a century’

Ted Cruz champions the FAIR Act: restoring sanity to the Fed and ending handouts to foreign banks

At a time when American families are facing high inflation, crippling interest rates, and an exploding national debt, Senator Ted Cruz has introduced a bold legislative proposal to tackle one of the most absurd and costly practices of the Federal Reserve. The FAIR Act — Financial Accountability for Interest Rate Returns — aims to roll back a policy enacted in 2008 that has turned the Fed into a subsidy machine for banks, including foreign institutions, all at the expense of U.S. taxpayers.

For over a century, the Fed operated without paying interest on bank reserves. But following the 2008 financial crisis, that policy was reversed. Today, the Fed pays 4.4% interest to banks just for parking their money, while the European Central Bank pays only 2.2%. According to Cruz, over 40% of those interest payments are going to non-American banks. That means U.S. taxpayers are funding foreign financial giants while drowning in their own national debt. “This makes absolutely no sense,” Cruz declares.

The FAIR Act would eliminate these hidden subsidies and restore the Fed’s historic approach — one that doesn’t reward banks for hoarding cash. But the plan does more than that. Cruz argues it would lower interest rates for ordinary Americans. By removing the incentive to park money at the Fed, banks would be more likely to purchase Treasury bonds, boosting demand and driving interest rates down. The result: lower borrowing costs for families buying homes, cars, or refinancing debt.

“This is a win-win,” Cruz says. “It saves taxpayer money, stops sending payments to foreign banks, and improves the financial outlook for American families and small businesses.”

Of course, the proposal faces resistance from the entrenched financial elite and Washington’s technocratic class, who have turned the Fed into an opaque institution far removed from democratic accountability. Meanwhile, the Biden administration remains silent on this massive wealth transfer to foreign financial institutions.

The FAIR Act is not just a technical fix — it’s a rallying cry for taxpayers, a statement of financial sovereignty, and a critical step toward restoring common sense in U.S. economic policy. It also poses a challenge to Republican lawmakers: will they stand with the American people or continue enabling Wall Street and the globalist banking class?

Senator Cruz has drawn the line. Now it’s up to Congress to decide whether to keep feeding foreign banking giants... or finally stand with the American people.

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