It’s true, we could let consumers open accounts at the Federal Reserve and turn it into a retail bank. But that doesn’t benefit the average American, since checking is already free.

And for retail loans, interest wouldn’t be cheaper if the Fed gave bank loans, because interest on bank loans is based on rates of default and a bank’s lending history. It’s not just some rent seeking fee on top of the federal funds rate. Turning the Fed into the only retail bank would reduce options for lending and the availability of credit.