The proposal, (H.R. 8421) titled The Federal Reserve Board Abolition Act, was unveiled on May 16. If enacted, it would abolish the Fed’s Board of Governors and banks, and also repeal the Federal Reserve Act, transferring its responsibilities back to the Department of the Treasury. "Americans are suffering under crippling inflation, and the Federal Reserve is to blame," Massie said in a statement. He professed that Fed monetary policy, particularly during the 2020 pandemic era, is responsible for the record high inflation that has crippled America’s economy and left the middle class struggling financially. Across the U.S., a family of four now needs a household income of between $177,000 and $294,000 per year, in order to live comfortably. "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,” said Massie. “By monetizing the debt, the Federal Reserve devalued the dollar and enabled free money policies that caused the high inflation we see today." The Fed was created in 1913 to serve as the United States’ central bank. The organization operates with a governing board and a decentralized operating structure of 12 regional reserve banks. Though many call the Fed a private bank, it is formally considered a type of public-private partnership. Critics argue that its influence has grown too powerful, with decisions often shrouded in secrecy and insulated from public accountability. The Federal Reserve Board Abolition Act was first introduced by former Rep. Ron Paul (R-Texas) in 1999. It was reintroduced in 2013. Massie’s version of the bill is supported by at least 20 congressmen, but is likely to face fierce bipartisan opposition from lawmakers who view the Federal Reserve as an essential institution for managing the nation's economy. "Monetizing debt is a closely coordinated effort between the White House, Federal Reserve, Treasury Department, Congress, Big Banks, and Wall Street," Massie continued. "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."Rep. Thomas Massie (R-Ky.) has once again made waves inside the Beltway, reviving a debate over who should set monetary policy following his introduction of legislation aimed at dismantling the Federal Reserve.
