Can The Government “Buy Back” the Fed?

Email Print

Here’s an inquiry from H.M. I don’t know the answer, but I’m sure someone here does.

“Dear Mr. Manion,

I recall reading a few years ago that part of the original Federal Reserve
legislation allowed that the congress could, at its option, buy back the Fed
for a sum of 850 million dollers. (At this point a rather paltry sum.)

If true, it would seem that all that lovely interest they collect would land
in the U.S. Treasury and could be applied to paying off the national
debt.(That is if it’s true)

I therefore, somewhat naively inquire;

1. Is it true?

2. If true, does the idea deserve some loud drum beating?”

8:26 am on September 20, 2008