US Senator Mike Lee has put forward a daring proposal to eliminate the Federal Reserve system, the nation’s central bank, and disband its board of governors. Known as the “Abolition Law”, this legislative move also aims to revoke the foundational law that established the system back in 1913.
Hailing from Utah, the Republican senator has criticized the Fed for overstepping its boundaries and failing to effectively manage key aspects of the economy, such as inflation and national debt. Representative Thomas Massie from Kentucky has echoed his sentiments in the House of Representatives, lending support to Lee’s initiative.
In a bold statement, Lee declared, “The Federal Reserve has repeatedly fallen short of meeting its obligations and has transformed into an economic puppeteer that has directly contributed to the financial turmoil facing many Americans today.” He went on to explain that the bill is designed to “safeguard our economic future by dismantling a system that enables unchecked government spending, the monetization of federal debt, and widespread economic upheaval.”
Similarly, Thomas Massie pointed the finger at the Federal Reserve for the “hardship” experienced by American citizens as a result of “crippling inflation.” He claimed that during the COVID-19 pandemic, the Fed “printed billions of dollars out of thin air and lent them to the Treasury Department to facilitate unprecedented deficit spending.” Massie added, “By monetizing debt, the Fed devalued the dollar and facilitated loose monetary policies that have led to the high inflation we are witnessing today.”
This legislative push has ignited heated debates surrounding the structure and function of the Federal Reserve, with opinions ranging from advocating for a complete overhaul to defending the stability that the system purportedly offers to the US economy.
Disclaimer: The opinions expressed by the author and individuals mentioned in this article are for informational purposes only and should not be considered as financial or investment advice. Investing or trading in cryptocurrencies carries a risk of financial loss.
Editor’s Choice: Budget Constraint May Limit US SEC Actions on Crypto Regulations Bitcoin ETFs Reach Milestone, Record $887 Million in Inflows