Today, Congresswoman Maxine Waters (D-CA), the top Democrat on the House Financial Services Committee, issued the following statement in response to reports that the Department of Justice served the Federal Reserve with grand jury subpoenas threatening criminal charges against Chair Jerome Powell related to his testimony before the Senate Banking Committee last June.
“The Trump Administration’s latest attempt to go after Federal Reserve Chair Jerome Powell using the Department of Justice is its most reckless escalation yet in its all-out assault on the independence of the Federal Reserve.
Since day one, this President has been determined to undermine the Fed’s independence from the White House, through relentless public attacks on its interest rate decisions, efforts to prosecute Fed officials, and political interference with the composition of the Fed’s Board. Most recently, the Trump Administration advanced baseless accusations against Fed Governor Lisa Cook to try to seek her removal, which was temporarily blocked by federal courts after judges found the President lacked a legal basis to remove the Fed Governor. Each new attack raises the stakes and underscores how far the Trump Administration is willing to go to undermine our public institutions for its own political agenda.
But let’s be very clear, this is not about transparency, accountability, or Congress’s oversight role as they are claiming. Federal Reserve Chair Powell has been honest and transparent about the Federal Reserve’s renovation of its historic buildings and made every effort to keep Congress informed. What this latest action is really about is punishing Fed Chair Powell for refusing to bend the knee to Trump’s dangerous and self-promoting political demands, even in the face of Trump’s endless threats and insults.
Chair Powell has admirably served under Republican and Democratic Administrations and has carried out his duties with integrity, consistent with the Federal Reserve’s statutory mandate. An independent Federal Reserve is essential to keeping inflation in check and maintaining stable markets. Importantly, the Fed helps families afford homes, groceries, and everyday necessities at a time when costs are soaring as a result of Donald Trump’s failed economic agenda. Unfortunately, our decades old tradition of Fed independence is facing its greatest challenge under Donald Trump and his Administration.
Congress is not powerless. The Senate already made a mistake last year by confirming Stephan Miran to serve on the Fed Board even while he refuses to resign from his White House post at the Council of Economic Advisors. My colleagues in the Senate would be foolish to rubber stamp any more of Trump’s Fed nominees that will simply be the President’s ‘yes’ men, and I urge them to oppose any new nominee to the Federal Reserve until these baseless and politically motivated charges are dropped. Rest assured, I and my Democratic colleagues, will continue to defend the independence of the Federal Reserve, the rule of law, and the integrity of our financial system against any attempt to weaken them for political gain especially against Trump and his Administration.”
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