US Congressman defends Fed independence amid Trump criticism
3 Min Read
Rep. Frank Lucas says there is bipartisan support for Federal Reserve independence as Trump pressures Fed Chair Jerome Powell and stirs fears of politicization.
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In this Nov. 4, 2014, file photo, Rep. Frank Lucas, R-Okla. gestures during his victory speech at the Republican watch party in Oklahoma City. (AP)
The Republican leader of a congressional task force on the Federal Reserve has underscored bipartisan support for stronger protections around Federal Reserve independence, amid escalating criticism from President Trump directed at Fed Chair Jerome Powell.
Rep. Frank Lucas (R-Okla.) told Axios in an exclusive interview that maintaining the central bank's autonomy is essential, especially as political pressures mount.
"From my perspective, the challenge is how do you keep my friends in Congress and other political forces around from impeding price stability and impeding the focus of the Fed," Lucas said. "Independence matters to me."
He added that the task force has explored ways to reinforce this autonomy, aiming to build "the walls higher and stronger and taller" around the Federal Reserve.
Trump’s attacks on Powell raise market concerns
Lucas noted that removing Powell would not be easy and emphasized that the Fed is more than just one individual.
"Whatever political background they have, whatever school of economics they come from—these are extremely bright individuals and not one of them has a timid bone in their body," he said, referring to the Fed's seven-member Board of Governors, which decides on interest rate policy.
Trump, however, has increased pressure on Powell, recently declaring, "The Fed chair's termination cannot come fast enough!"
On Monday, Trump called for an immediate cut in interest rates, unsettling global investors already wary due to trade tensions.
In a Truth Social post on Monday, Trump cited declining prices across several sectors to argue that inflation is no longer a significant threat. "With Energy Costs way down, food prices (including [former President Joe] Biden's egg disaster!) substantially lower, and most other 'things' trending down, there is virtually No Inflation," he wrote.
Trump attributed these favorable trends to his own predictions and maintained that the Federal Reserve's high-rate stance is increasingly unjustified. "With these costs trending so nicely downward, just what I predicted they would do, there can almost be no inflation, but there can be a SLOWING of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW," he added, referring to Powell.
Lucas, in turn, remarked, "I don't know that we need any extra excitement in the markets right now...Generally when we're operating under great moments of stress, the more stability we can project in the system, the better off we are."
Bipartisan interest in shielding Federal Reserve
Lucas said there is a strong Democratic interest in reinforcing the independence of the Federal Reserve.
"I believe there's an opportunity here in this task force to actually legislate where we can address both: take the Fed out of social policy and reinforce the Fed's position as a central banker," he said.
While Republicans have traditionally warned against the Fed engaging in social policy, the current concern focuses on preserving its political independence under heightened executive scrutiny.
"I have great faith in President Trump, but he's not always going to be presidentm, and we have to do the things that reflect whoever or whatever comes after him in the future," Lucas concluded.
Read more: Trump tariffs may force Fed into policy crossroads: Powell
