Rep. Juan Vargas, Ranking Member Maxine Waters Statement on DOJ Dropping Baseless Probe into Fed Chair Powell and Senate Banking Confirmation of New Fed Chair

WASHINGTON - Today, U.S. Representatives Juan Vargas (D-CA-52), Ranking Member of the Monetary Policy Task Force, and Maxine Waters (D-CA-43), the top Democrat on the House Financial Services Committee, issued the following statement in response to the Senate Banking Committee's expected approval of Trump's Fed Chair nominee, Kevin Warsh.

"Trump's Department of Justice's criminal investigation into Federal Reserve Chair Jerome Powell was baseless, politically motivated, and an abuse of power from day one, as was the unlawful attempt to fire Governor Lisa Cook. These and other actions were designed to intimidate leaders of the Federal Reserve and bend one of the most important economic institutions in the world to Donald Trump's will.

And make no mistake, this is far from over. Trump has not dropped his effort to remove Governor Cook or the bogus investigation of her mortgage files. And the threat to reopen the investigation into Chair Powell is still hanging over the Federal Reserve like a cloud, sending a chilling message to any Fed official who refuses to fall in line with this Administration's political agenda.

At the same time, Republicans are rushing to install a new Federal Reserve Chair who will do exactly what Trump wants. That raises serious questions about whether this entire episode was part of a broader effort to pressure the Fed and hand the keys for monetary policy over to Trump.

Let us be very clear, the Federal Reserve serves the American people, not Donald Trump. That independence is not optional, and it remains under attack. The Administration must immediately drop all efforts targeting any Federal Reserve official, including the continued attacks on Governor Lisa Cook. Committee Democrats will not stand by while this Administration tries to strong-arm our independent financial institutions, undermine economic stability, and put hardworking families at risk. We will continue to fight back and hold the President accountable."

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