Marketplace No, the Fed should not stop paying interest on reserves
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Jun 12, 2025 
Yanti Sarepto, President and CEO of Save the Children U.S., discusses the troubling effects of USAID cuts on vital services, emphasizing the urgent need for support. Kristen Schwab highlights Senator Ted Cruz's controversial proposal to end Federal Reserve interest payments, exposing its potential risks to economic stability. The conversation also dives into Amazon's new AI video ad technology, showcasing a major shift in digital marketing. Listeners gain insights into navigating economic challenges and the resilience required in communities facing crises.
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Retirement Comfort vs. Sons' Struggles
- Bill and Catherine enjoy a comfortable retirement supported by pensions and Social Security, spending on travel and hobbies without much financial worry.
- They reflect concerns about their sons' financial struggles, highlighting generational economic challenges and the high cost of housing and education.
Save the Children Navigates Crisis
- Save the Children faces upheaval due to USAID funding cuts, causing chaotic program terminations and major staff reductions.
- The organization is adapting by focusing on core programs, seeking new funding, and considering strategic reforms for efficiency and collaboration.
Fed Interest Payments Are Essential
- Senator Ted Cruz's proposal to stop Federal Reserve interest payments on reserves wouldn't save taxpayers money.
- The Fed must pay interest to control interest rates, so stopping payments would force other costly measures and not reduce federal expenses.