US Senator Mike Lee recently proposed a bold bill that calls for the abolition of the Federal Reserve system, the central bank of the United States, along with its board of governors. The legislative initiative, called “Abolition Law”, also aims to annul the fundamental law that gave rise to the system in 1913.

Representing the state of Utah, the Republican senator criticized the Fed for exceeding its mandate and failing to control crucial aspects of the economy, such as inflation and public debt. Lee’s proposal found an echo in the House of Representatives, where it was supported by Representative Thomas Massie of Kentucky.

“The Federal Reserve has repeatedly failed to fulfill its mandate and has become an economic manipulator that has directly contributed to the financial instability that many Americans face today,” Lee said in a statement. He added that the legislation seeks to “protect our economic future by dismantling a system that allows uncontrolled government spending, the monetization of the federal debt that fuels it, and widespread economic disruption.”

In turn, Thomas Massie pointed to the Federal Reserve as responsible for the “suffering” of American citizens due to “paralyzing inflation”. During the COVID-19 pandemic, Massie alleged, the Fed “created billions of dollars out of thin air and loaned them to the Treasury Department to enable unprecedented deficit spending.” He added: “By monetizing debt, the Fed devalued the dollar and allowed free monetary policies that caused the high inflation we see today.

This legislative movement sparked intense discussions about the structure and function of the Federal Reserve, with opinions varying between support for a complete overhaul and defense of the stability that the system supposedly provides to the US economy.


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