US Lawmaker Introduces Bill to Dismantle Fed’s Board of Governors and Abolish the Central Bank

Following the policymaker’s survey, U.S. Representative Thomas Massie (R-Ky.) announced the introduction of H.R. 8421, known as the “Federal Reserve Board Abolition Act.” This legislation aims to dismantle the Board of Governors of the Federal Reserve and close its branches across the continental United States.

Federal Reserve Board Abolition Act Resurfaces

Two days ago, Massie, the Republican U.S. Representative from Kentucky, published a poll on the social media platform X. The poll asked whether he should introduce legislation to end the U.S. central bank. An overwhelming majority of more than 115,000 votes supported the idea to “end the Fed.” In response to the survey, Massie introduced H.R. 8421, which seeks to repeal the Federal Reserve Act, the 1913 law that established the Federal Reserve System.

“Americans are suffering under crippling inflation, and the Federal Reserve is to blame,” Massie explained in his announcement. “During COVID, the Federal Reserve created trillions of dollars out of thin air and loaned it to the Treasury Department to enable unprecedented deficit spending. By monetizing the debt, the Federal Reserve devalued the dollar and enabled free money policies that caused the high inflation we see today.”

Massie is not alone in attributing inflation to the Federal Reserve. For decades, critics have contended that the central bank’s authority results in artificial economic manipulation. As the renowned economist Murray Rothbard discusses in “What Has Government Done to Our Money?,” the Federal Reserve’s money creation leads to inflation, which diminishes the purchasing power of money and causes a misallocation of resources. The Fed is also accused of distorting interest rates and concentrating economic decision-making power in the hands of a few unelected individuals.

“Monetizing debt is a closely coordinated effort between the White House, Federal Reserve, Treasury Department, Congress, Big Banks, and Wall Street,” Massie contends. The Republican Representative further added:

Through this process, retirees see their savings evaporate due to the actions of a central bank pursuing inflationary policies that benefit the wealthy and connected. If we really want to reduce inflation, the most effective policy is to end the Federal Reserve.

The legislation aims to “abolish the Board of Governors of the Federal Reserve System and the Federal Reserve banks, to repeal the Federal Reserve Act, and for other purposes.” If enacted, it would allow a one-year dissolution period, during which all Federal Reserve employees would be compensated as the government closes the central bank.

Additionally, the Director of the Office of Management and Budget would oversee the orderly liquidation of all assets of the Board and the Federal Reserve banks. Massie’s announcement notes that the original Federal Reserve Board Abolition Act was first introduced by former Representative Ron Paul (R-Texas) in 1999 and had not been reintroduced since 2013.

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