This week, Congresswoman Maxine Waters (D-CA), the top Democrat on the House Financial Services Committee, led Committee Democrats including Representatives Brad Sherman (D-CA), Stephen Lynch (D-MA), Al Green (D-TX), Joyce Beatty (D-OH), Juan Vargas (D-CA), Ayanna Pressley (D-MA), and Sylvia Garcia (D-TX), in a roundtable discussion with former Federal Reserve Vice Chair Dr. Lael Brainard to examine unprecedented threats to the independence of the Federal Reserve in light of President Trump’s attempted removal of Fed Governor Lisa Cook.

During the discussion, Committee Democrats and Dr. Brainard highlighted the serious and immediate risks posed by President Trump’s efforts to politicize the nation’s central bank and control monetary policy for political gain, including:

• Donald Trump’s attempt to strip the Fed of its independence and control monetary policy by packing the Federal Open Market Committee with allies and loyalists. Dr. Brainard emphasized that such interference would mark a fundamental break from longstanding norms that protect the Fed from political pressure, opening the door to manipulation of interest rates for partisan benefit.
  
  
• Ongoing efforts to undermine diversity and inclusion on the Fed Board, as demonstrated by the attempted firing of Governor Lisa Cook, the first Black woman on the Board. Committee Democrats noted that removing Dr. Cook would not only reverse progress on representation, but also chill future appointments of qualified candidates from underrepresented backgrounds.
  
  
• The serious long-term economic implications of losing Fed independence, such as increased borrowing costs, higher inflation volatility, and diminished confidence among investors and the public. Trump's efforts could permanently erode the Fed’s hard-earned credibility and ability to keep inflation in check.
  
  
• What’s at stake for everyday Americans—retirement security, wage growth, and affordability—should the central bank become vulnerable to political manipulation. Dr. Brainard warned that damage to the Fed’s independence could create “many years of pain” for Americans, including persistent high inflation, elevated borrowing costs, and weaker job growth, not just short-term problems.
  
  
• The urgent need for Congressional action to safeguard the Fed’s autonomy and ensure it can fulfill its dual mandate of maximum employment and stable prices for all Americans.
  

Committee Democrats reaffirmed their commitment to defending the independence of the Federal Reserve as a cornerstone of America’s economic strength, warning that any partisan takeover would threaten the prosperity and stability of every household in the nation.

Watch the full roundtable HERE.

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