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Cruz Proposes $1.1 Trillion Cut to Federal Reserve Powers

6/13/2025

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Summary

Story summary

Texas Senator Ted Cruz is shaking things up by proposing to strip the Federal Reserve of its power to pay interest to banks, a move he believes could save a staggering $1.1 trillion over the next decade. In discussions with fellow Republican senators and President Trump, Cruz envisions this strategy as a way to alleviate the financial burden of Trump's tax and spending plan, potentially easing the deficit's weight.

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Story summary

Texas Senator Ted Cruz is shaking things up by proposing to strip the Federal Reserve of its power to pay interest to banks, a move he believes could save a staggering $1.1 trillion over the next decade. In discussions with fellow Republican senators and President Trump, Cruz envisions this strategy as a way to alleviate the financial burden of Trump's tax and spending plan, potentially easing the deficit's weight.