Support the independence of the Federal Reserve

I am writing to express my strong concern about the administration’s recent efforts to erode the independence of the Federal Reserve. The Federal Reserve’s autonomy has long been essential to maintaining confidence in our financial system, from households and workers to banks and governments alike. The credibility of the Federal Reserve rests on the fact that its policy decisions—most importantly, the setting of interest rates—are made independently through the majority vote of the 12 members of the Federal Open Market Committee. This process has ensured balanced decision-making, guided by evidence and economic expertise, rather than political pressure. When that independence is compromised, the risks are serious. Without confidence that the Federal Reserve is acting on its own judgment, inflation expectations become unanchored, borrowing costs can rise, and financial instability can spread rapidly. The ability of the Fed to credibly commit to maintaining the value of our currency through low and stable inflation depends on its insulation from short-term political demands. I am especially troubled by recent calls—most notably from the President—that the Federal Reserve should sharply lower the federal funds rate from 4.38 percent to 1 percent. Such demands, if acted upon under political pressure rather than economic analysis, would destabilize markets, weaken the dollar, and punish American savers and workers alike. Equally troubling are the administration’s actions targeting Federal Reserve governors for transparent political reasons. The attempt to fire Governor Lisa Cook is a deeply concerning example. Her removal is desired because of her policy views and independence of judgment. To dismiss a sitting governor for these reasons undermines the integrity of the Fed’s governing structure and sends a chilling message to all members that political loyalty, rather than economic expertise, will determine whether they are permitted to serve. I urge you to stand firmly in defense of the Federal Reserve’s independence. Congress has a responsibility to ensure that this vital institution remains free from inappropriate political interference, so it can continue its work of safeguarding price stability, employment, and financial stability for the long-term good of the country. Thank you for your attention to this pressing matter. I ask that you publicly and actively resist efforts to compromise the Federal Reserve’s independence.