After conducting a survey among policymakers, U.S. Representative Thomas Massie (R-Ky.) has unveiled the introduction of H.R. 8421, dubbed the “Federal Reserve Board Abolition Act.” This proposed legislation aims to dismantle the Board of Governors of the Federal Reserve and shutter its branches throughout the contiguous United States.

Resurfacing of the Federal Reserve Board Abolition Act

Just two days ago, Massie, the Republican Representative from Kentucky, conducted a poll on the social media platform X, asking whether he should propose legislation to terminate the U.S. central bank. A vast majority of over 115,000 votes favored the notion to “end the Fed.” In response to the survey results, Massie put forward H.R. 8421, which seeks to repeal the Federal Reserve Act, the 1913 legislation that established the Federal Reserve System.

In his announcement, Massie stated, “Americans are enduring significant inflation, and the Federal Reserve bears responsibility.” He continued, “Amidst COVID, the Federal Reserve generated trillions of dollars out of thin air and lent it to the Treasury Department to enable unprecedented deficit spending. By monetizing the debt, the Federal Reserve devalued the dollar and facilitated loose monetary policies that have led to the current high inflation.”

US Lawmaker Proposes Bill to Dismantle Fed’s Board of Governors and Eradicate the Central Bank

Massie is not the only one attributing inflation to the Federal Reserve. For decades, critics have argued that the central bank’s authority results in artificial economic manipulation. As the esteemed economist Murray Rothbard discusses in “What Has Government Done to Our Money?,” the Federal Reserve’s money creation leads to inflation, diminishing the purchasing power of money and causing a misallocation of resources. The Fed is also accused of distorting interest rates and consolidating economic decision-making power in the hands of a select few unelected individuals.

“Monetizing debt is a closely coordinated effort between the White House, Federal Reserve, Treasury Department, Congress, Big Banks, and Wall Street,” Massie asserts. He further added:

Through this process, retirees witness their savings deplete due to the actions of a central bank pursuing inflationary policies that favor the affluent and well-connected. If we genuinely seek to mitigate inflation, the most effective approach is to terminate the Federal Reserve.

The legislation aims to “abolish the Board of Governors of the Federal Reserve System and the Federal Reserve banks, to repeal the Federal Reserve Act, and for other purposes.” If passed, it would initiate a one-year dissolution period, during which all Federal Reserve employees would receive compensation as the government winds down the central bank.

Furthermore, the Director of the Office of Management and Budget would oversee the orderly liquidation of all assets of the Board and the Federal Reserve banks. Massie’s announcement highlights that the original Federal Reserve Board Abolition Act was initially introduced by former Representative Ron Paul (R-Texas) in 1999 and had not been reintroduced since 2013.

What are your thoughts on Thomas Massie’s proposal to terminate the U.S. Federal Reserve system? Feel free to share your perspectives and viewpoints on this matter in the comments section below.