Republicans have introduced bill aiming to ‘end the Fed’

Republicans are taking on the Federal Reserve—and this time, they’re looking to abolish the central banking system as we know it.

Kentucky Republican Congressman Thomas Massie recently introduced the Federal Reserve Board Abolition Act, which aims to eliminate the Federal Reserve Board of Governors and the Federal Reserve banks.

Massie argues that the Fed's reckless monetary policy led to the "crippling" inflation Americans are dealing with today.

“Americans are suffering under crippling inflation, and the Federal Reserve is to blame,” Massie said in a release announcing the legislation.

“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,” he added.

In an effort to see whether American voters were in favor of his idea—Massie posted a poll on X, formerly Twitter, last month asking if he should introduce the legislation.

The poll received 115,000 votes—with an 86% majority voting in favor to “end the Fed.””If we really want to reduce inflation, the most effective policy is to end the Federal Reserve,” Massie said.

Massie is seen among colleagues as an anti-big government Republican—widely recognized as a champion of individual liberty and freedom.

The inflation blame game

Economists are split on the true impact the Fed has on inflation—with some arguing the central bank is the main culprit for stubbornly high inflation rates.

”By failing to stabilize nominal spending, the Fed has transformed a moderate and transitory inflation into a new Great Inflation,” wrote Nicholas Curott and Tyler Watts in the American Institute for Economic Research.

“A sustained inflation practically requires a rapid increase in nominal spending growth which the Fed fails to offset with contractionary monetary policy.”

The Fed's monetary stimulus, in particular rock-bottom interest rates, has also propelled housing prices, which have been some of the biggest contributors to inflation."

”One major driver of inflation is housing, which contributes about one-third of the Consumer Price Index and which economists predict could remain a thorn in the Fed’s side throughout 2024,” CBS News recently reported.

Will it be different this time?

The Kentucky Republican is not the first to introduce legislation to end the Fed.

In 2009 — Kentucky Republican and former presidential candidate Rand Paul introduced similar legislation in the 111th Congress, targeting the Fed’s monetary policy decisions and operations.

That bill failed to make substantial progress in Congress—as have other similar pieces of legislation over the years.

It’s unclear what type of support Massie will have for the bill, but some big-name Republicans have already joined as sponsors, including Rep. Lauren Boeber (R-Co.), Rep. Majorie Taylor Greene (R-Ga.), and Rep. Matt Gaetz (R-Fla.), among nearly 20 more.

This will be the first time since 2013 a bill to end the Fed will be brought to the House floor.