Do Calls to “Abolish the Fed” Actually Make Sense?

Do Calls to “Abolish the Fed” Actually Make Sense?

H.R. 8421, a bill before the House of Representatives, seeks to abolish the Federal Reserve. It’s not the first anti-Fed legislation and it seems unlikely to be the last. Argentine President Javier Milei vows to abolish Argentina’s central bank, calling it “non-negotiable.” 

Argentines have dealt with nosebleed inflation, but abolishing the Fed is considered a fringe view in the US.

But does it make sense? Economics is a social science, so nobody can answer authoritatively, but across from the Federal Reserve’s flagship office in Washington, DC, I shared my thoughts with analyst Shaoping Huang, who’d been doing some research on why and how the Fed was created (hint: to avoid the US’ trend of a financial catastrophe happening every 20 years or so, which had been the case pre-Fed). 

In our chat – more candid conversation than presented video – we discuss what the Fed does and why the anti-Fed crowd gets concerned. And while I understand at least some of the worries of those seeking abolishment, I can’t personally see how doing away with a key institution underpinning the world’s largest economy gets us there. 

Click here or on the image below to watch.

Do Calls to “Abolish the Fed” Actually Make Sense?

This article is for informational purposes only and is neither investment advice nor a solicitation to buy or sell securities. All investment involves inherent risks, including the total loss of principal, and past performance is not a guarantee of future results. Always conduct thorough research or consult with a financial expert before making any investment decisions. Neither the author nor BBAE has a position in any investment mentioned.

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