Sen. Elizabeth Warren (D-Mass.) accused President Donald Trump of attempting to undermine the independence of the Federal Reserve, warning that such a move could spark inflation, driving up costs substantially for American families.
Higher Costs For Consumers
On Sunday, in a post on X, Warren said, “Donald Trump is trying to take over the Fed, America's central bank,” warning that “If he's successful, it'll mean higher costs for YOU.”
In a video accompanying her post, Warren says that the Fed's independence is crucial to safeguarding the economy. “The Federal Reserve is America's central bank that helps safeguard our economy. Its leaders are supposed to be independent from the president,” she says.
See Also: Inflation And Unemployment Are Soaring–And The Fed Is Now Trapped
She adds that this is because the Fed’s leaders need to make decisions based on the data they receive, but when Presidents interfere, she says, “the Fed makes its decisions based on what the president wants rather than data, and costs go up for everyone.”
“Mortgages, credit card interests, student loan payments, you name it,” she says, highlighting broad-based inflation resulting from political interference at the Fed.
She cited examples of other countries that have followed a similar path, such as Turkey and Argentina, while also referencing former President Richard Nixon’s term in the 1970s, an era characterized by high inflation, unemployment and lower GDP growth.
Criticizes Stephen Miran For Fed Governor
In her video, Warren also criticized Trump’s pick for Federal Reserve governor, Stephen Miran, who currently serves as the Chair of Trump's Council of Economic Advisors.
Warren highlights the fact that Miran “couldn't even say the words Donald Trump lost the 2020 election” and “is refusing to resign from his current White House job, meaning he intends to serve as [the] President’s chief economist and as a supposedly independent governor at [the[ Fed both at [the] same time.”
This comes amid Trump’s escalating attacks on the Fed in recent months and his continued efforts to remove Fed Governor Lisa Cook over the past few weeks.
Even billionaire hedge fund manager and Trump ally, Ken Griffin, has warned against meddling in the Federal Reserve, calling it a “risky game.” He warned that the “U.S. built its economic credibility slowly over a long time. Once lost, it won’t be easy to regain.”
Photo courtesy: Sheila Fitzgerald / Shutterstock.com
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