While I really do not know enough about the topic of abolishing the Fed, they do seem to cause undue volatility despite their mission.
From the news
Federal Reserve Bank of Richmond President Jeffrey Lacker said Thursday that the U.S. is at risk over its sovereign-debt levels and that the newly passed bank-reform legislation could pose challenges for some lenders.
The U.S. stock market drew a Tuesday afternoon lift from speculation the Federal Reserve was readying to announce an effort to force banks to lend more.
So the Fed speaks and the market tanks. Then the Fed speaks and the market rebounds. Yet, when you look at both cases the economy was still in trouble.