US Senator Warren Urges Fed Governor Waller to Halt Regional Reserve Bank Reform Proposal

Odaily News: US Senator Elizabeth Warren has urged Federal Reserve Governor Christopher Waller to stop his efforts to reform the operational structure of the Fed's 12 regional reserve banks. As the lead Democrat on the Senate Banking Committee, Warren wrote to Waller on Wednesday, stating that his proposed reforms for the Federal Reserve system may conflict with federal law and suggested they could undermine the Fed's independence.

Although Waller, as chairman of the Federal Reserve Board's Committee on Reserve Bank Affairs, holds certain supervisory powers, these regional banks were established with a high degree of autonomy, including control over their own day-to-day operations. "This proposal does not appear to be a serious attempt to reform the Federal Reserve system. Instead, it looks more like a barely disguised effort to curry favor with Trump, who is seeking greater control over the presidents of the regional banks," Warren wrote in the letter. "I am asking you to immediately cease all work related to this proposal and provide more information to Congress."