The Federal Reserve is asking the public to weigh in on the future of its check-processing operations, signaling that significant cutbacks may be on the table as the use of paper checks in the United States continues to decline.

The Federal Reserve is on track to post its first systemwide profit since the fourth quarter of 2022. Since September, 2022, the combined expenses of the 12 Federal Reserve district banks and the Fede

The Fed outlined multiple paths for the future of check processing as infrastructure needs grow. ・Digital payments are rising even as check fraud increases and volumes decline. ・Vice Chair Michelle Bowman raised concerns that the review could underestimate consumers and businesses that still rely on checks.

In the QE era, the Fed relies on two administered rates - Interest on Reserve Balances (IORB) and Overnight Reverse Repo (ON RRP) rate - to control overnight interest rates in the market. This is the so-called " floor system ."

U.S. Treasury Secretary Scott Bessent said on Tuesday the Federal Reserve's system of managing interest rates is struggling and needs to be simplified.

China is attempting to weaken the US by eroding trust in the Federal Reserve, which could lead to a collapse of the global economy and a shift in power to Beijing.

A key question is whether the Supreme Court will reinforce its suggestion that Fed officials can keep their job protections even if other leaders can’t.