• Republican lawmakers reintroduce the Federal Reserve Board Abolition Act, aiming to dissolve the central bank within one year.
• The bill seeks to repeal the 1913 Federal Reserve Act, transferring monetary policy authority to President Donald Trump.
• Senator Mike Lee and Representative Thomas Massie accuse the Fed of fueling inflation and enabling reckless deficit spending.
• The legislation faces steep opposition in the Senate but could pass the GOP-controlled House.

In a dramatic challenge to the status quo of U.S. monetary policy, Republican lawmakers are reigniting efforts to dismantle the Federal Reserve, the central bank that has governed the nation’s financial system for over a century. Senator Mike Lee (R-UT) and Representative Thomas Massie (R-KY) reintroduced the Federal Reserve Board Abolition Act on Wednesday, a bold proposal that would dissolve the Fed’s Board of Governors and its regional banks within one year. The bill also seeks to repeal the Federal Reserve Act of 1913, the legislation that established the central bank – effectively handing monetary policy authority to elected officials.

This move comes as inflation continues to erode the purchasing power of American families, with critics blaming the Federal Reserve’s reckless money-printing and interest rate policies for the economic turmoil. The reintroduction of the bill signals a growing frustration with the Fed’s unchecked power and its role in enabling runaway federal spending.

The Federal Reserve: a century of economic manipulation

The Federal Reserve, created in 1913, was designed to stabilize the U.S. economy by regulating the money supply and acting as a lender of last resort during financial crises. However, critics argue that the central bank has strayed far from its original mandate, becoming a tool for economic manipulation that benefits Wall Street and the wealthy at the expense of everyday Americans.

“The Federal Reserve has not only failed to achieve its mandate, it has become an economic manipulator, directly contributing to the financial instability many Americans face today,” Senator Lee told the Daily Caller News Foundation. “We need to protect our economic future, end the monetization of federal debt that fuels unchecked federal spending, and put American money on solid ground. We need to End the Fed.”

Representative Massie echoed these sentiments, pointing to the Fed’s role in creating trillions of dollars “out of thin air” during the COVID-19 pandemic. “Americans have suffered under crippling inflation, and the Federal Reserve is to blame,” Massie said. “By monetizing the debt, the Federal Reserve devalued the dollar and enabled free money policies that caused high inflation.”

The Fed’s actions during the lockdowns, including massive asset purchases and near-zero interest rates, have been widely criticized for fueling inflation and devaluing the dollar. Critics argue that these policies disproportionately harm retirees and savers, whose fixed incomes and savings are eroded by rising prices.

Trump’s push for oversight and the fed’s independence

The reintroduction of the Federal Reserve Board Abolition Act aligns with President Trump’s long-standing criticism of the central bank’s independence. During his first term, Trump repeatedly clashed with Federal Reserve Chairman Jerome Powell, accusing the Fed of failing to “beat” inflation and calling for lower interest rates.

On February 18, Trump signed an executive order aimed at expanding presidential authority over independent agencies, though the order notably excluded the Federal Reserve. “Previous administrations have allowed so-called ‘independent regulatory agencies’ to operate with minimal Presidential supervision,” Trump stated in the order.

While Trump has not publicly endorsed the bill, his support for greater oversight of the Fed suggests a potential shift in the balance of monetary power. If passed, the legislation would mark the most significant restructuring of the U.S. financial system since the Fed’s creation, effectively ending its control over interest rates, money supply, and inflation policy.

A steep uphill battle in Congress

Despite gaining traction among some Republicans and high-profile supporters like Elon Musk, the Federal Reserve Board Abolition Act faces significant hurdles in Congress. While the GOP-controlled House may pass the bill, it is likely to encounter fierce opposition in the Senate, where Democrats and establishment Republicans have historically defended the Fed’s independence.

Lee and Massie first introduced the bill in June 2024, but it failed to advance in the 118th Congress. Their latest effort seeks to capitalize on Trump’s growing influence over the GOP and his economic policy agenda. However, even with Republican support, the legislation’s prospects remain uncertain in a deeply divided Congress.

A financial reckoning on the horizon?

If successful, the Federal Reserve Board Abolition Act would represent a seismic shift in U.S. monetary policy, dismantling an institution that has shaped the nation’s economy for over a century. The Fed’s policies have created a system of economic inequality, where the wealthy benefit from inflated asset prices while ordinary Americans struggle with rising costs of living.

“Monetizing debt is a closely coordinated effort between the Federal Reserve, Treasury Department, Congress, Big Banks, and Wall Street,” Massie said. “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.”

As the debate over the Fed’s future unfolds, one thing is clear: the central bank’s unchecked power and inflationary policies have left a trail of economic destruction in their wake. Whether this bold legislative effort succeeds or fails, it has ignited a critical conversation about the role of the Federal Reserve and the future of America’s monetary system. In a world where the value of the dollar continues to erode, the fight to “End the Fed” is not just a political battle—it is a fight for the financial survival of the American people. Ron Paul was right – and it’s never too late to End the Fed!

Sources include:

Yournews.com

DailyCallerNewsFoundation.org

Amazon.com