Elon Musk has become part of the increasing number of individuals calling for modifications to the Federal Reserve’s control over US monetary policy. Recently, Musk retweeted a post from Utah Senator Mike Lee on his social media site, endorsing Lee’s proposal to abolish the Federal Reserve, arguing that it violates the Constitution. Lee’s message emphasized the need for the Federal Reserve to be more accountable to the executive branch, which Musk supported by marking the post with a “100” emoji, signifying his agreement.
Senator Lee stated that Federal Reserve Chairman Jerome Powell’s steadfast refusal to step down, even if requested by President-elect Donald Trump, exemplifies an “out-of-control system.” Lee emphasized that the Constitution intended the executive branch to act under the president’s authority, a premise he believes the Federal Reserve violates. Musk’s endorsement of this message is consistent with a growing movement among individuals who argue for decreasing the Federal Reserve’s role in guiding the US economy.
Concerns over Centralized Monetary Control The campaign to remove the Federal Reserve is gaining popularity, especially among supporters of decentralized currencies such as Bitcoin. Critics say that the Fed’s centralized authority causes inflation and devalues the dollar. Since its inception in 1913, the Federal Reserve has presided over a period during which the dollar has purportedly lost nearly 96% of its value, raising worries about the long-term viability of centralized monetary policies.
Bitcoin supporters view decentralized digital assets as a safeguard against inflation and political control. Against the backdrop of mounting national debt, which currently surpasses $35 trillion, Bitcoin has emerged as a potential option for protecting buying power. Several public authorities have shown support for incorporating Bitcoin into financial portfolios, including Florida’s Chief Financial Officer, Jimmy Patronis, who is advocating for the state’s pension funds to dedicate a portion of their reserves to Bitcoin.
Calls for Fiscal Responsibility and Bitcoin Integration.As the national debt continues to rise, lawmakers are considering incorporating Bitcoin into federal and state reserves. In July 2024, Wyoming Senator Cynthia Lummis filed legislation to create a Bitcoin reserve for strategic purposes. According to Lummis, the measure intends to combat inflation, maintain economic stability, and defend American citizens’ purchasing power.
Adding to the conversation, President-elect Trump hinted at utilizing Bitcoin as an inflation hedge and even suggested using it to lower the national debt during his keynote talk at the Bitcoin 2024 conference. This concept is gaining popularity as traditional financial systems struggle with recurrent inflation and excessive government debt. Trump has also mentioned the prospect of using Bitcoin reserves to build a strong foundation for the economy as he prepares to assume office in January 2025.
With these high-profile endorsements, the push to review the Federal Reserve’s position and implement decentralized currency methods gains awareness. For Musk and those who support this effort, it is an important step toward altering US monetary policy and ensuring the country’s financial future.
