Congress proposes dismantling the Federal Reserve entirely
H.R. 1846 — Federal Reserve Board Abolition Act · Filed by Thomas Massie (R-KY) · 11 cosponsors · Introduced Mar 5, 2025 · Referred to committee
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What it does
This bill would abolish the Federal Reserve Board and all 12 Federal Reserve Banks within one year of enactment, liquidate their assets, transfer proceeds to the U.S. Treasury, and assume all Fed liabilities (including employee pensions and outstanding obligations) under the Treasury Department. The Secretary of the Treasury would oversee the wind-down and asset sale.
Why we flagged it
The bill's stated mechanism is straightforward: it directly abolishes the Federal Reserve and repeals the Federal Reserve Act. However, the functional consequence is the elimination of the entire U.S. monetary policy apparatus, which is a radical restructuring of the financial system, not a routine legislative adjustment.
What the text implies
- Abolishing the Fed removes the lender of last resort function, eliminating the institution's ability to prevent or manage banking panics and financial crises, potentially triggering systemic collapse.
- The bill does not specify what institution (if any) would conduct open-market operations, set interest rates, or manage the money supply after abolition, creating a vacuum in monetary policy authority.
The full analysis lists 5 implications of this text.
Who stands to gain
Cryptocurrency and alternative currency advocates (removal of Fed monetary control); Unregulated financial institutions (loss of Fed supervision); Certain hedge funds and speculators (potential market volatility from asset liquidation)