Fed FactCheck: Federal Reserve Looks Out For Own Interests at Expense of Taxpayers
The Federal Reserve released a staff working paper in an attempt to protect their own best interests and distract the public from the billions in available savings from modernizing U.S. currency from the dollar bill to the dollar coin. Last year, the Fed recorded nearly $2 billion from the dollar note (explaining its staunch opposition to a dollar coin), which would be directly returned to taxpayers if Congress switched to the coin. Meanwhile, they are practically alone in their opposition to a dollar coin, as nearly every industrialized economy in the world has transitioned its lowest denomination currency to a coin – in some instances generating as much as ten times initially estimated savings. Contrary to the claims of the Fed – countless studies have repeatedly proved that the dollar coin would save taxpayers billions. One recent study by a former Treasury Department economist estimated the savings of the dollar coin to be as high as $13.8 billion.
This begs the question, why did the Federal Reserve feel compelled to spend seemingly hundreds of thousands of taxpayer dollars and countless staff hours producing a report that contradicts dozens of previous studies and common sense? Further, how can they claim to be a dispassionate observer in this debate, rather than a bureaucracy with nearly $2 billion a year in profits at stake in this decision? Is this to protect their own interests at the expense of the American taxpayers and common sense?