Politics

Sen. Mike Lee introduces legislation to dissolve the Federal Reserve

WASHINGTON, DC—Senator Mike Lee recently proposed an ambitious legislative measure known as the Federal Reserve Board Abolition Act. This act aims to dissolve the Board of Governors of the Federal Reserve System and the Federal Reserve banks while also repealing the 1913 Federal Reserve Act.

The 1913 Federal Reserve Act created the Federal Reserve System to act as the central bank of the United States. The Federal Reserve was then tasked with regulating and stabilizing the nation’s financial system.

The Federal Reserve also has the authority to conduct monetary policy, such as controlling the money supply and interest rates in the U.S. This authority also allows the Federal Reserve to influence economic conditions, such as inflation, unemployment, and economic growth, in addition to supervising and regulating banks in the U.S.

Sen. Lee argues that the Federal Reserve has failed in its responsibilities and has only contributed to financial insecurity in the U.S.

“The Federal Reserve has overstepped and repeatedly failed to achieve its mandate and become an economic manipulator that has directly contributed to the financial instability many Americans face today,” said Sen. Lee.

“This legislation aims to protect our economic future by dismantling a system that enables unchecked government spending, the monetization of federal debt that fuels it, and widespread economic disruption. It’s time to end the Fed.”

If Senator Lee’s proposal gains approval from Congress and is signed into law by the President, it would result in the dissolution of all Federal Reserve banks and the Board of Governors of the Federal Reserve System, along with the repeal of the 1913 Federal Reserve Act, all within a one-year timeframe.

Representative Thomas Massie, a Republican from Kentucky, introduced companion legislation in the House of Representatives, citing the Federal Reserve’s inability to curb inflation.

“Americans are suffering under crippling inflation, and the Federal Reserve is to blame,” said Rep. Massie.

“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.”

Sen. Lee’s proposed bill also calls for the liquidation of all the Federal Reserve’s assets in a timely manner, which will then be transferred to the Secretary of the Treasury and deposited in the General Fund of the Treasury.

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