Defend Federal Reserve Independence from Political Interference

I am writing to urge you to defend the independence of the Federal Reserve from political interference. Recent efforts to undermine the Fed's autonomy threaten to inflict lasting damage on our economy through higher inflation that could persist for years or decades. The evidence is clear: countries with independent central banks consistently achieve better inflation outcomes than those where politicians control monetary policy. Venezuela, Argentina, and Turkey serve as cautionary examples of what happens when political leaders manipulate interest rates for short-term gain. The United States learned this lesson in the 1970s when Presidents Johnson and Nixon pressured the Fed, resulting in painful stagflation that took years to overcome. Current threats to Fed independence are unprecedented in scope. The administration is attempting to fire Fed Governor Lisa Cook, challenging the 90-year precedent requiring cause to remove independent agency leaders, and appointing Steve Miran to the Fed Board while he remains on unpaid leave from his White House political job. Most concerning is the largely unreported effort to purge all twelve regional Fed bank presidents up for renewal in February using a fabricated residency requirement that would have disqualified nearly all current presidents. Research indicates that if political control over the Fed succeeds as it did under Nixon, U.S. prices would rise by 7 percent over the next decade. The administration has explicitly stated that cutting rates is the litmus test for the next Fed chair, prioritizing short-term political sugar rushes over long-term economic stability. Politicians controlling interest rates have every incentive to keep them artificially low to stimulate the economy before elections, but this creates dangerous inflation that harms working families through higher costs for groceries, housing, and healthcare. I urge you to publicly oppose any efforts to undermine Fed independence and support legislation that strengthens protections for Fed governors and regional bank presidents from political removal.