The Cost of Fed Membership

Abstract: Since the Federal Reserve's founding, it has paid a regular dividend to banks that are members of the Federal Reserve System in exchange for those banks holding stock in Federal Reserve Banks. Recent transportation legislation reduced these dividends and used the savings to help fund the bill. While this move provided a short-term financing fix, it also raised a much bigger question of whether banks will want to remain members of the Federal Reserve System.

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Bibliographic Information

Provider: Federal Reserve Bank of Richmond

Part of Series: Richmond Fed Economic Brief

Publication Date: 2016

Issue: Feb