Federal Reserve Board Abolition Act

Abolish Federal Reserve, Treasury assumes costs

If enacted, this bill would abolish the Board of Governors and each Federal Reserve bank at the end of the 1-year period after enactment. During that 1-year winding-up period the Chairman would manage employees and pay compensation and benefits that accrued before jobs are abolished. The Director of the Office of Management and Budget would liquidate all Fed assets as quickly and orderly as practicable while maximizing returns to the Treasury. After accepted claims are paid and Federal Reserve bank stock redeemed, liquidation net proceeds would go to the Treasury General Fund. Outstanding Fed liabilities, including retirement and benefit obligations, would become liabilities of the Secretary of the Treasury and be paid from those deposited liquidation proceeds, which are appropriated for that purpose until satisfied. The Secretary of the Treasury and the OMB Director would file a joint report to Congress at the end of the 18-month period describing actions taken and any unresolved issues. This would remove the agencies that set monetary policy and supervise banks, and the bill does not include a replacement plan.