A Republican senator’s plan to take away the Federal Reserve’s power to pay banks interest on cash they park on central bank books could cause chaos for monetary policy implementation if it were implemented,

For context, one thing the central bank does is act as a bank for banks. And like a commercial bank pays interest on its clients deposits, the Fed pays interest on banks' reserves. Texas Republican Senator Ted Cruz has floated the idea of ending that practice and claims it could save $1.1 trillion over a decade.

So far this year, the Federal Reserve has kept interest rates steady. But when will that change, and how could it impact what you earn on your savings?

At the Federal Open Market Committee meeting next week, investors will scrutinize all communications for any sign that the recent softening in U.S. inflation could be enough to nudge policymakers closer to cutting interest rates.

Fed funds futures continue to price in a high probability that the central bank will again leave its target unchanged at next week’s policy meeting.