Elon Musk supports abolishing the Federal Reserve! U.S. lawmakers reintroduce bill, BTC becomes a new favorite against inflation?

TSL and SpaceX founder Musk (Elon Musk) recently retweeted a post from Utah Senator Mike Lee, implying that the community supports Lee's call to abolish the Federal Reserve Bank.

Is Powell at odds with Trump?

Rewinding back to last week's FOMC meeting, Fed Chairman Powell announced a 1-point rate cut (0.25%), which immediately led to a general uptick in investment markets including US stocks and cryptocurrencies. Powell stated that it is too early to discuss the impact of the new government agenda on the economy, but the presidential election should not have a short-term impact on policy making.

On the other hand, Barr mentioned in a subsequent interview that the law does not allow the president to dismiss executive officials forcibly; therefore, even if it is Trump's request, he will not step down. Barr also emphasized that attempting to initiate impeachment before his term ends is also not allowed by law.

Oppose Powell's remarks

This move by Paul drew a barrage of criticism from Senator Mike Lee, who believes that Paul's remarks reflect a system that has spiraled out of control. He wrote through X:

"Based on the design of the Constitution, the executive branch should operate under the guidance of the President, but the Federal Reserve has clearly deviated from the Constitution, which is one of the reasons why we should abolish the Federal Reserve (#EndTheFed)."

Regarding this, Musk responded to the post with the emoji "💯", indicating that he completely agrees with Lee's statement.

Image source: X/@elonmusk Musk agrees with Mike Lee's call to abolish the Federal Reserve

Foreign media Cointelegraph believes that Lee's advocacy may cause an upsurge in emotions among BTC maximalists (Bitcoin Maximalists); and Musk's boost may further amplify this sentiment.

Note: Bitcoin maximalists generally believe that Fiat Currency, based on central government management, will lead to continuous devaluation of the currency due to inflation.

No more relying on BTC without the Federal Reserve?

As BTC, the digital gold, is increasingly praised by the public, politicians, and financial institutions. Previously, US Senator Cynthia Lummis proposed a "BTC Reserve Bill", urging the government to purchase and hold 5% market share of BTC circulation to reduce national debt as much as possible; the goal of the proposal is to purchase one million BTC in the next five years and store them in multiple secure locations.

The BTC reserve bill is also supported by Democratic Congressman Ro Khanna, who believes that due to the immense appreciation potential of BTC, the US government should use confiscated BTC as a strategic reserve; In addition, MicroStrategy founder Michael Saylor also publicly supported Lummis' BTC reserve proposal last Thursday, stating that including BTC in the national treasury reserve could bring a new pillar of economic stability to the United States.

With the strong support of political parties and enterprises, the reserve value of Bitcoin is gradually being followed by society, and it is expected to become an important variable in US economic policy in the future, thereby achieving financial integration between encryption currency and the overall economy.