It was Senator Mike Lee who first proposed doing away with the Federal Reserve. The ‘Abolish Act’ he introduced in 1913 aims to dismantle the key Federal Reserve Act.
American Senator Mike Lee has presented legislation to dissolve the Federal Reserve and its governing board. Proposed legislation known as the “Abolish Act” aims to do more than just abolish the federal system’s founding document—the 1913 Federal Reserve Act.
Republican senator from Utah, Lee, said that the Federal Reserve “overstepped” its authority and was unable to rein in inflation and the national debt. Representative Thomas Massie of Kentucky was one of the House members who backed Lee’s approach.
“Many Americans are facing financial instability today because the Federal Reserve has been an economic manipulator and has failed time and time again to fulfill its purpose,” Lee said, adding:
“Senator Lee made the statement “it’s time to abolish the Fed,” perhaps alluding to a book written by Ron Paul, a former congressman from Texas, in 2009. According to reports, Rand Paul—the son of Ron Paul—is a close buddy of Lee’s and serves as the Republican senator for Kentucky.”
Representative Thomas Massie also placed the blame on the Federal Reserve, saying that they were responsible for the “suffering” of Americans “under catastrophic inflation.”
“The Federal Reserve printed trillions of dollars and leased them to the Treasury Department to facilitate massive deficit spending under COVID,” he stated. His reasoning was that “the Fed depreciated the currency and permitted free money policies that generated the enormous inflation we witness today” due to the monetization of debt.
Inflation and unemployment are the responsibility of the Federal Reserve, which is under increasing criticism from legislators about its use of interest rates to reduce prices. Inflation against the same month a year earlier dropped slightly to 3.4% from 3.5%, according to statistics from the U.S. Labor Department. The year-over-year number has fallen for the first time in 2024, but inflation remains higher than the Fed’s aim of 2%.
Compared to before the epidemic, prices of goods and services are still higher. To counteract this, the central bank has been steadily increasing interest rates since 2022.
According to Mike Lee’s Abolition Act, the chairman of the board of governors of the central bank should be kept after the board is dissolved to ensure a seamless transition, which includes paying employee benefits and managing assets and debts. He said that the Treasury Department would get the proceeds from the asset disposal in due course.
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