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The Fed monopoly shouldn't compete with private banks

Stephen Moore, Washington Times

The Wall Street Journal likened FedNow to a “public option” — the left’s favorite term these days. But so far the Fed is leveraging its manifold public advantages — such as its direct access to unlimited capital from the monetary system it oversees — to steamroll private bank competitors. This is particularly unfair because the Fed had previously declared that “ultimately, implementation of [real time] proposals will be driven by the private sector.” There probably is no way to put the toothpaste back in the tube, meaning that FedNow is with us for good. But its role should be shaved back to supplement the real-time market, not collapse it into a Postal Service-type monopoly.