Cruz Sells Trump, GOP on $1.1 Trillion Cut to Fed Bank Payments

Texas Senator Ted Cruz pitched Republican senators Wednesday on ending the Federal Reserve’s authority to pay interest to banks, claiming it would save $1.1 trillion over a decade, with members of the party’s conservative flank lauding the idea.

“I made the case directly to the president in the Oval Office last week, I made the case at lunch today,” Cruz said in an interview at the Capitol. If the idea is added to Trump’s massive tax and spending package, it could help to offset the cost and limit its impact on the deficit, Cruz said.

Republican Senator Ted Cruz.

Photographer: Al Drago/Bloomberg

Cruz noted payments of ...