The Trump administration has started a major, and much-needed, review of the Federal Reserve, America’s central banking system. That is why Treasury Secretary Scott Bessent is calling for a hard-eyed assessment of the institution’s impact. He is consulting on the potential transfer of its powers to a government department. The U.S. dollar as represented by the Federal Reserve note has lost an astounding 96% of its value since the founding of the Federal Reserve in 1913. This historic drop is what has made this move possible.
The Federal Reserve’s monetary policy has always been focused on stabilizing inflation projections, employment levels, and political situations around the world. Critics say its strategies have created profound economic inequities. For instance, the expertise of Federal Reserve central bankers contributed to the stagflation of the 1970s, when inflation peaked at nearly 14%. Most economists still place the blame for the 2008 Great Recession on the Federal Reserve’s interest rate manipulation.
Bessent’s comments reflect broader concerns regarding the Federal Reserve’s role in the economy. We must take a hard look at the whole Federal Reserve empire,” he proclaimed. “It’s time to start asking whether they have done a good job. Nate’s not done, and his next big target are the hundreds of economists on the Federal Reserve’s payroll. He calls them the “universal basic income for academic economists.” While well-intentioned, this viewpoint undermines their overall effectiveness and value as stewards of the country’s financial health.
The current debate about the Federal Reserve highlights an important point — the ongoing destruction of our currency. Critics say this trend is bad for American taxpayers and currency holders. Between 1880 and 1914, the United States maintained an inflation rate of only 0.1 percent per year under a different monetary system. This historical context is misappropriated by many advocating for alternative monetary policies, gold and silver standards included.
We are tracking pro-gold and silver bills in more than 32 states that are already working to go gold and silver in 2025. In fact, many of these bills have already gone into law! These movements don’t only indicate a shift in state policymakers’ moods for or against the use of alternative currencies.
The Eccles Building, which now houses the Federal Reserve, is currently undergoing a billion-dollar renovation paid for by taxpayers. Opponents say that these types of spending add to the growing public frustration over the Federal Reserve’s incompetence and lack of accountability.
When Bessent talks about the Fed, what she’s saying sounds very much like someone wishing for a return to easier monetary policies. He also made clear his eagerness for reforms that do not further centralize monetary power. He’s convinced that a system selected by billions of individual market actors would produce superior outcomes to one determined by a few hundred decision-makers.
Today’s debate on the Federal Reserve mirrors a century-long discussion about the proper role of monetary policy in designing our desired economic outcomes. Many are calling for a fresh independent review—and perhaps even complete dismantling—of the venerable institution. Critics say this would pull the rug out from the intricate economic tapestry that’s been woven since.