Nonsense. So we don’t make a check to the “Fed.” Where do the interest payments go? You are too smart by half and don’t know it.
“Nonsense. So we don’t make a check to the “Fed.” Where do the interest payments go? You are too smart by half and don’t know it.”
“Interest payments” are made by the government to anyone who owns Treasury bills. But I’m not sure that’s what you intended to ask.
If what you intended to ask is ‘how is money collected that will be paid out as interest on the debt’, then that is the money that you pay to the Treasury when you mail in your check at tax time.
The IRS instructions tell you to make out your check to the US Treasury. That money pays the government’s bills, including the interest owed on the national debt. That’s the only way that money is collected to pay interest on the debt. By taxes. The Fed plays no role in this whatsoever.