U.S. Discusses Abolishing Fed

Discussions are intensifying within U.S. close government circles about calls to abolish the Federal Reserve System. The reason is a possible confrontation with the White House.

The Marriner S. Eccles Federal Reserve Board Building
Author: AgnosticPreachersKid

Jerome Powell, Chair of the Fed, said during a press conference that he wouldn’t resign if asked by Donald Trump, who will assume office as U.S. President on January 20, 2025. The official also noted that the White House has no right to fire him, BBC reported.

During his previous presidential term, Trump considered firing the Fed chair amid an increase in the key interest rate. During the election campaign in 2024, the politician told Bloomberg he would allow the Fed chair to complete the term, provided the policies aligned with Trump’s views. Jerome Powell’s term as Fed Chair ends on May 15, 2026.

However, Trump repeatedly voiced that the U.S. President should have more influence over the Fed. Against this background, speculation arose over Trump potentially seeking Powell’s removal, and reporters questioned Powell on the matter. His response sparked mixed reactions.

In particular, Mike Lee, Senator of Utah, as a reaction to the official’s statements, publicly proposed dissolving the Federal Reserve System as a structure inconsistent with the U.S. Constitution because “the Executive Branch should be under the direction of the president.” The idea was also supported by Elon Musk, who is expected to be part of Donald Trump’s administration.

Two days after the U.S. election, the Fed cut its key interest rate, which CP Media covered within the context of Bitcoin’s ATH.

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