How the Federal Reserve’s Decisions Are Hurting Families Like Mine
What America Can Do About It
Jul 19, 2025
The original U.S. Constitution said that only Congress could control our money, and I think that’s fair because we get to elect our Congressmen. But in 1913, something big changed. Congress passed a law called the Federal Reserve Act, which created the Federal Reserve—a powerful central bank run by unelected people. That means regular Americans don’t have any say in who controls the economy, and that’s not right.
The Fed (short for Federal Reserve) was supposed to help the country, but I think it’s actually hurting us. When the Fed changes interest rates or manipulates the economy, it causes inflation, which means things cost more and our money doesn’t go as far. Poor people already struggle, and inflation just makes it worse. Even my mom, who works hard and isn’t poor, says it’s hard to buy the things we used to because prices are so high.
The Federal Reserve can raise or lower interest rates, which affects how much it costs to borrow money. They say they’re supposed to be neutral and not take sides, but guess what? It sure looks like they took sides before. Back when Kamala Harris was running for president, they lowered interest rates twice. Now, with Trump back in office, they won’t lower rates—even though prices are high and people are struggling. That seems biased to me.
Interest rates are around 7.1% right now. That’s really high! It makes it really hard for young people—or anyone—to buy a house. My mom wants to get a house near my school, but even the small ones are super expensive. One of my friends said a house that used to cost $200,000 now costs close to $2 million once you add up all the interest from the high rates.
Also, the Fed has way too much control over the economy. Their policies decide how easy or hard it is for families to buy homes, afford groceries, and keep up with basic bills. They were supposed to make things better, but instead, their decisions have made life harder for regular people.
Even local banks can create money out of almost nothing. They’re allowed to lend out more than they actually have in savings. That doesn’t seem fair to the rest of us.
If we brought back the original Constitution and made sure only Congress had control over our money like it’s supposed to, the Federal Reserve wouldn’t be able to make decisions that hurt families. Maybe we could even shut it down. That could help stop inflation and give regular Americans—and especially poor people—a second chance.
When inflation gets worse, poor people can’t afford food or gas or rent. It hurts everyone. And if the system keeps making it worse, the cycle just continues. That’s why we have more poor people today. Inflation hurts a nation.
If we return to the Constitution, we could:
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Shut down the Federal Reserve
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End inflation
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Give power back to the people
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Help families like mine and yours have a real chance again
That’s why we need to put the Constitution back in charge—and stop the Federal Reserve from hurting our country.
Sounds easy. But once you have let the horse out of the barn, it can be difficult to get him back in. Congress is too broken to expect them to be focused and responsive to monetary policy needs. They can’t even manage fiscal policy. The Treasury could do the job but it would always be tangled in politics. The Fed has also fallen to political pressure as you correctly point out. So what is the difference. Maybe there isn’t any. The big problem with monetary policy has been created in great part by fiscal policy. Too much federal largesse accompanied with huge federal debt. The easy answer of killing the Fed and giving the responsibility to Treasury or another agency is a bad answer without sufficient guardrails. The President needs to have more say in determining national monetary policy. In his previous administration, President Trump successfully used jawboning to get interest rate changes from the Fed. Maybe not as much and not as quickly as he wanted, but it happened. I predict the same will happen this time also.