This bill abolishes the Federal Reserve Board and Federal Reserve Banks one year after enactment, transferring assets to the Treasury and tasking the Treasury Secretary with managing outstanding liabilities.
Thomas Massie
Representative
KY-4
The "Federal Reserve Board Abolition Act" eliminates the Federal Reserve Board and Federal Reserve Banks one year after enactment, repealing the Federal Reserve Act. During the dissolution period, the Chairman of the Federal Reserve Board will manage the winding down of affairs, and the Office of Management and Budget Director will liquidate assets to maximize returns to the Treasury. The Treasury Secretary will assume outstanding liabilities and, along with the Office of Management and Budget Director, report to Congress on the implementation of the Act.
Federal Reserve Abolition Act: Central Bank to Be Dismantled Within One Year, Treasury Takes Over
The Federal Reserve Board Abolition Act (SEC. 1) is exactly what it sounds like: a plan to completely dismantle the Federal Reserve System within a year of the bill's enactment (SEC 2). That includes the Board itself and all the regional Federal Reserve Banks. The Federal Reserve Act, the foundation of the whole system, would also be repealed.
Pulling the Plug
This bill puts the current Chairman of the Federal Reserve in charge of shutting everything down, but with a catch – every major move needs the green light from the Treasury Secretary. Think of it like a controlled demolition, with the Treasury Secretary holding the detonator. All the Fed's assets, from buildings to bonds, will be sold off by the Office of Management and Budget (OMB), with the goal of getting the best possible price for the Treasury (SEC. 2). After paying off debts and obligations, any leftover cash goes straight into the Treasury's General Fund.
Who's Holding the Bag?
Once the Fed is gone, the Treasury Secretary becomes responsible for all its remaining debts and obligations. This includes pensions and benefits for former Fed employees. The money to cover these costs will come from the funds deposited into the General Fund from the asset sales (SEC. 2).
Show Your Work
Within 18 months of the bill becoming law, the Treasury Secretary and the OMB Director have to deliver a report to Congress. This report must detail every step taken to shut down the Fed, and flag any problems that came up along the way (SEC. 2). This creates a paper trail, at least in theory.
Real-World Ripple Effects
Imagine a small business owner who relies on stable interest rates to plan investments. Or a construction worker whose job depends on the housing market, which is heavily influenced by Fed policy. Abolishing the Fed without a clear, stable replacement could throw these folks – and many others – into a world of uncertainty. It is not just about numbers on a spreadsheet; it's about people's livelihoods and financial security. The lack of detail on what comes after the Fed is a major concern. This bill focuses entirely on tearing down the existing system, with very little said about what will replace it. This creates a massive question mark about the future of the U.S. economy and the stability of our money.