H.R.1846 - Federal Reserve Board Abolition Act (119th Congress)
Summary
H.R.1846, the Federal Reserve Board Abolition Act, proposes to abolish the Board of Governors of the Federal Reserve System and the Federal Reserve Banks. It also aims to repeal the Federal Reserve Act within one year of enactment. The bill outlines procedures for winding down the affairs of the Federal Reserve, including liquidating assets and assuming liabilities by the Secretary of the Treasury.
Expected Effects
If enacted, this bill would eliminate the current structure of the Federal Reserve System. The Secretary of the Treasury would assume responsibility for the assets and liabilities of the Federal Reserve. This could lead to significant changes in monetary policy and financial regulation.
Potential Benefits
- Potentially increased Congressional oversight of monetary policy.
- Elimination of perceived conflicts of interest within the Federal Reserve System.
- Potential for a more streamlined and accountable monetary policy framework.
- Could lead to a reassessment of the role of government in the economy.
- May address concerns about the Federal Reserve's independence and influence.
Potential Disadvantages
- Potential for economic instability during the transition period.
- Loss of expertise and institutional knowledge within the Federal Reserve System.
- Increased political influence over monetary policy.
- Uncertainty regarding the future of financial regulation and stability.
- Possible disruption of international financial relationships.
Constitutional Alignment
The constitutionality of abolishing the Federal Reserve is complex. Congress has the power to coin money and regulate its value (Article I, Section 8). However, the extent to which Congress can delegate authority to an independent entity like the Federal Reserve has been debated. This bill seeks to reclaim that authority, which could be argued as a return to a more direct exercise of Congressional power. However, the potential disruption to the financial system could raise concerns about the government's ability to "insure domestic Tranquility" and "promote the general Welfare," as stated in the Preamble.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).