Federal Reserve board member Milan: cannot remove Federal Reserve interest payments on reserve deposits at the moment

Federal Reserve Governor Lael Brainard said that considering stopping the payment of interest on reserves to commercial banks by the Federal Reserve is impractical. "I think, under the current monetary policy framework and banking regulatory system, where we are forcing banks to hold reserves to some extent, you can't really eliminate interest on these reserve balances," Brainard said. Brainard made the comments at a panel discussion at the Judge Business School of the University of Cambridge on Wednesday. Some Republican lawmakers, including Florida Senator Rick Scott, support legislation to stop the Federal Reserve from paying interest on reserves.