Key Senator Looks to Slow Ted Cruz Plan on Fed Interest to Banks

Senate Banking Committee Chairman Tim Scott said he opposes swift action on a proposal that would bar the Federal Reserve from paying interest on reserves to banks to help pay for Republicans’ massive tax and spending package.

“While the desire to return to pre-crisis monetary policy operating procedures is understandable, any legislative change to the Federal Reserve’s framework must follow regular order,” Scott said Thursday in a statement. “This is not a decision to be rushed – it must be carefully considered and openly debated.”

Senator Tim Scott

Photographer: Al Drago/Bloomberg

Scott, a South Carolina Republican, said the idea should go through the Senate’s typically ...