[Federal Reserve Governor Milan: Unable to Cancel Interest Payments on Reserves at This Stage] Federal Reserve Governor Stephen Milan stated that the current monetary policy framework and banking regulatory system require banks to hold reserves, making it impossible to cancel interest payments on reserve balances. He pointed out that addressing the issue of reserve interest rates would first require improvements to the banking regulatory framework to reduce the size of the Federal Reserve's balance sheet. Milan mentioned that reducing interest expenses is a topic the Federal Reserve is repeatedly discussing. Some Republican lawmakers support legislation to stop the Federal Reserve from paying interest on reserves, but Milan believes this move is impractical at this stage.