The Battle Over Fed Master Accounts
The Federal Reserve’s master‑account system, long reserved for traditional banks, is facing a regulatory overhaul as fintech and crypto firms push for direct access. President Trump’s May 19 executive order compels regulators to review and potentially loosen rules, while proposals like David Zaring’s “skinny charters” and the bipartisan PACE Act suggest activity‑specific licensing pathways. Recent approvals, such as Kraken’s master account, hint at a shift toward limited, “skinny” access. Industry leaders now argue for sandbox experiments at regional Reserve Banks to test these new frameworks safely.
Peter Conti-Brown on a New Fed-Treasury Accord
In this episode, host David interviews Peter Conti‑Brown about his recent essay outlining three possible reforms to the Fed‑Treasury relationship, focusing on discount‑window liquidity and its stigma. They discuss recent remarks by Fed Governor Michelle Bowman and Treasury Secretary Janet...
Three Kinds of Fed-Treasury Accords
Peter Conti‑Brown outlines three separate Fed‑Treasury accords: one freeing the Treasury from setting monetary policy, a second keeping the Fed out of partisan politics, and a third enhancing collaboration on public‑debt management. He traces the historic 1951 Accord that granted...