The Cost of Fed Membership

Helen Fessenden and Gary Richardson

Richmond Fed Economic Brief, 2016, issue Feb

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.

Date: 2016
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