Protect The Federal Reserve’s Independence Now

Defend the Federal Reserve’s Independence The Federal Reserve was created by Congress to serve the American people—not the political interests of any administration. The President’s recent attempt to fire Governor Lisa Cook without cause violates both the letter and spirit of the Federal Reserve Act. This action threatens to undermine the Fed’s independence, destabilize our economy, and weaken confidence in U.S. governance. If political interference succeeds here, every future decision on interest rates, inflation control, and employment policy could be subject to partisan manipulation. Removal Without Cause Is Illegal Section 10 of the Federal Reserve Act makes clear that governors serve 14-year terms and may be removed only for cause, such as neglect of duty or malfeasance. Removing a governor for political reasons has no legal foundation. To allow it would set a precedent for executive overreach into independent institutions. The purpose of the for-cause standard is precisely to shield central bank decision-making from day-to-day politics. Eroding this standard would invite litigation, erode market trust, and undermine the constitutional principle of checks and balances. Economic Costs of Political Meddling When central banks are subordinated to political control, the result is nearly always the same: inflation expectations lose their anchor, borrowing costs rise, and confidence in the nation’s currency falters. For Americans, that means higher mortgage rates, more expensive car loans, diminished small-business lending, and weaker retirement savings. For the United States as a whole, it means a weaker dollar, reduced global credibility, and a heavier debt burden as Treasury borrowing costs climb. The independence of the Fed is not an abstract principle—it directly affects the financial well-being of families, workers, and businesses across this country. Congress Must Act Now I urge you to take three immediate steps: 1. Speak publicly and unequivocally to affirm the Federal Reserve’s independence and the rule of law that protects it. 2. Hold emergency oversight hearings in the House Financial Services and Senate Banking Committees to examine this attempted removal and its consequences. 3. Advance legislation to strengthen the for-cause standard, require expedited judicial review of any attempted firing, and bar political interference in Federal Reserve decisions. The Stakes Could Not Be Higher The Federal Reserve is one of the strongest pillars of U.S. economic stability. Its independence is central to protecting household budgets, preserving market confidence, and ensuring that America remains a global leader in financial credibility. Allowing partisan politics to control the Fed would be a grave mistake with lasting consequences. I urge you to act now to prevent this outcome.