U.S. Congressman Thomas Massie has reintroduced a bill aimed at abolishing the Federal Reserve. The legislation known as H.R. 1846 proposes repealing the 1913 Federal Reserve Act and dissolving relevant entities.
Goals of H.R. 1846
The bill aims to repeal the Federal Reserve Act of 1913 and dissolve the Board of Governors of the Federal Reserve System along with its 12 regional banks. These measures are intended to reduce the central bank's influence on the economy.
Reasons to Abolish the Fed
Massie argues that the Federal Reserve has excessively inflated the money supply in recent years, particularly during and after the COVID-19 pandemic. He claims this has led to significant price inflation and devaluation of the U.S. dollar. According to Massie, the Fed's monetary policies primarily benefit large financial institutions and the wealthy, while ordinary Americans suffer from reduced purchasing power and increased living expenses.
Possible Consequences of Ending the Fed
If passed, the bill would mandate the complete dissolution of the Federal Reserve within a year, transferring all remaining assets and liabilities to the U.S. Treasury. A public audit would occur 18 months post-enactment. While the bill may face substantial political resistance, it raises critical questions about the Fed's role in managing the economy. Critics warn that sudden changes in monetary policy could destabilize financial markets, whereas supporters believe that ending the Fed is a necessary step to restore fiscal discipline.
The H.R. 1846 document raises important questions about the influence of the Federal Reserve on the economy and may spark discussions about the future direction of monetary policy in the United States.
