SB 869, the Federal Reserve Board Abolition Act, would abolish the Board of Governors of the Federal Reserve System and each Federal Reserve Bank one year after enactment. It would also repeal the Federal Reserve Act at the end of that same one-year period, effectively dismantling the current Federal Reserve System and ending the statutory framework that authorizes it.
During the one-year wind-down period, the bill assigns the Federal Reserve Chair a limited role in managing employees, compensation, benefits, assets, and liabilities solely for dissolution purposes, subject to Treasury approval. It directs the Office of Management and Budget to liquidate the Federal Reserve’s assets in an orderly way, transfer net proceeds to the Treasury’s General Fund, and have the Secretary of the Treasury assume and pay outstanding liabilities, including retirement and other employee benefits. The bill also requires a joint report from Treasury and OMB to Congress 18 months after enactment describing implementation actions and any unresolved issues.
Impact
The bill would substantially alter federal banking and monetary law by repealing the Federal Reserve Act and eliminating the legal basis for the Federal Reserve System. It would transfer winding-up authority to the Treasury and OMB, require liquidation of Federal Reserve assets, and shift outstanding liabilities to the federal government, with proceeds and appropriations flowing through the Treasury’s General Fund. If enacted, it would affect the central bank’s employees, retirees, creditors, member banks, and the broader financial system that relies on Federal Reserve operations.
Sentiment
Based on the bill text and the absence of recorded committee debate or votes in the provided materials, the available context suggests a highly controversial proposal rather than a consensus measure. The bill’s sweeping elimination of the Federal Reserve indicates a strong anti-Fed policy stance, but there is no evidence here of bipartisan support or formal committee endorsement. The referral to the Senate Banking Committee indicates it was treated as a major financial-policy bill requiring further review.
Contention
The central point of contention is the complete abolition of the Federal Reserve and repeal of the Federal Reserve Act, which would be expected to draw opposition from supporters of the current central banking system, financial regulators, and market participants concerned about monetary stability. Additional likely concerns involve the practical feasibility of liquidating Federal Reserve assets, assuming its liabilities, protecting employee and retiree benefits, and managing the transition without disrupting credit markets or payment systems. Supporters would likely frame the bill as a structural reform of monetary governance, while opponents would view it as destabilizing and operationally unworkable.
Federal Reserve Transparency Act of 2023 This bill establishes requirements regarding audits of certain financial agencies performed by the Government Accountability Office (GAO). Specifically, the bill directs the GAO to complete, within 12 months, an audit of the Federal Reserve Board and Federal Reserve banks. In addition, the bill allows the GAO to audit the Federal Reserve Board and Federal Reserve banks with respect to (1) international financial transactions; (2) deliberations, decisions, or actions on monetary policy matters; (3) transactions made under the direction of the Federal Open Market Committee; and (4) discussions or communications among Federal Reserve officers, board members, and employees regarding any of these matters.