I am writing to urge you to take immediate action to protect the independence of the Federal Reserve from political interference by the Trump administration. The Justice Department's criminal investigation into the Fed's headquarters renovation is a transparent attempt to intimidate Chairman Jerome Powell into lowering interest rates for political purposes.
The facts are clear. The Fed's renovation costs increased from $1.9 billion to $2.5 billion due to inflation and unexpected issues like excess lead and asbestos, not extravagant spending. Powell testified to the Senate Banking Committee in June 2023 that "There's no new marble, there are no new water features, there's no beehives and there's no roof garden terraces." The administration's sudden criminal probe, launched via grand jury subpoenas on Friday, comes after years of Trump publicly pressuring Powell to cut rates more aggressively.
Powell's Sunday statement made the stakes explicit: "This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions—or whether instead monetary policy will be directed by political pressure or intimidation." Central bank independence is not a partisan issue. It is fundamental to economic stability and credibility in global markets.
The timing reveals the political motivation. The Fed has cut rates at its last three meetings despite inflation remaining at 2.7 percent in December, well above the Fed's target. Trump wants even lower rates to stimulate the economy and reduce federal borrowing costs, but such decisions must be based on economic data, not presidential demands.
Senator Thom Tillis has already stated he will oppose any Fed nominee until this matter is resolved. I urge you to join him in publicly condemning this investigation, demanding its immediate termination, and committing to vote against any Fed nominee until the administration ends its campaign of intimidation against the Federal Reserve. Our economic stability depends on it.
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