Lawmakers press Fed witnesses on FedNow, CBDC and master accounts during field hearing

During questioning, members repeatedly raised payments policy: FedNow, master accounts, stablecoins and the prospect of a central bank digital currency (CBDC). Representative Davidson and others said they had seen activity across Fed labs and office locations and asked whether that work was progressing toward a retail CBDC.

Esther George replied she was "not aware that the Federal Reserve is working on a central bank digital currency" for retail use and said the Fed pays careful attention to the direction of public oversight bodies and Congress. Witnesses pointed out the Fed publishes annual reports, the Beige Book and other materials explaining operations and revenue; members asked where the public can find line‑item information about the Fed’s operating costs.

Members also raised the question of who should get master accounts and whether the Fed’s decisions on master accounts and reserve treatment create market‑distorting incentives. Several lawmakers asked about privacy, programmability and the rulemaking role of Congress versus the Fed; witnesses said those policy choices belong to Congress and that the Fed’s role is to implement and operate within the law.

No formal policy changes were adopted at the hearing; members signaled intent to continue oversight and potentially press for statutory clarity on payments, master accounts and stablecoin rules.