US Senator Warren Pressures Fed Governor Waller to Halt Regional Reserve Bank Reform Plans

Odaily News US Senator Elizabeth Warren is demanding that Federal Reserve Governor Christopher Waller halt 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 to the Federal Reserve system may conflict with federal law and could potentially undermine the Fed's independence.

Although Waller, as chairman of the Fed Board’s Committee on Reserve Bank Affairs, holds certain oversight powers, these regional banks were established from the outset with a high degree of autonomy, controlling their own daily 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 Donald Trump, who is trying to gain greater control over the regional bank presidents,” Warren wrote in the letter. “I demand that you immediately cease all work related to this proposal and provide Congress with more information.”