U.S. Senator Warren Urges Fed Governor Waller to Halt Regional Fed Reform Plan

Odaily reported that U.S. Senator Elizabeth Warren has urged Federal Reserve Governor Christopher Waller to cease his efforts to reform the operational structure of the 12 regional Federal Reserve Banks. As the leading Democrat on the Senate Banking Committee, Warren wrote to Waller on Wednesday, stating that his proposed reforms to the Federal Reserve System may conflict with federal law and suggested that they could undermine the Fed's independence.

Although Waller, as chairman of the Federal Reserve Board’s Reserve Bank Affairs Committee, holds certain oversight powers, these regional banks were originally granted a high degree of autonomy and maintain control over their daily operations. "Far from being a serious effort to reform the Federal Reserve System, this proposal reads as a barely disguised attempt to curry favor with President Trump, who is seeking greater control over the leadership of regional banks," Warren wrote in the letter. "I demand you immediately cease all work related to this proposal and provide more information to Congress."