Sen. Elizabeth Warren on Monday accused President Donald Trump of trying to politicize the Federal Reserve as he prepares to name a new chair, and she urged the Senate to block any nominee he puts forward.
In a sharply worded statement, the Massachusetts Democrat said Trump wants to remove current Federal Reserve Chair Jerome Powell from the central bank's board and replace him with a loyalist.
"As Donald Trump prepares to nominate a new Fed Chair, he wants to push Jerome Powell off the Fed Board for good and install another sock puppet to complete his corrupt takeover of America's central bank," Warren said in a statement issued Sunday.
Warren further alleged that Trump is misusing federal law enforcement authority to pressure the Fed.
"Trump is abusing the authorities of the Department of Justice like a wannabe dictator, so the Fed serves his interests, along with his billionaire friends," she said.
She called on lawmakers to halt the confirmation process entirely, adding, "This Committee and the Senate should not move forward with any Trump nominee for the Fed, including Fed Chair."
The Federal Reserve is designed to operate independently of the White House, with governors appointed for staggered 14-year terms and a chair selected for a four-year term.
Powell, who was first nominated by Trump in 2017 and later renominated by former President Joe Biden, has repeatedly emphasized the Fed's independence from political pressure. His current term as chair runs through May, while his term as a Fed governor extends beyond that date.
Trump has repeatedly criticized the Federal Reserve, and Powell in particular, arguing that interest rates are too high and blaming the central bank for economic headwinds.
During his first term, Trump publicly raised the possibility of firing Powell, though legal scholars questioned whether a president has the authority to remove a Fed chair without cause.
Warren, a longtime critic of Wall Street and a leading advocate for stricter financial regulation, has often clashed with Fed leadership over banking oversight and monetary policy. She has warned that political pressure on the central bank could undermine its independence.
The White House did not immediately comment on Warren's statement.
Any nomination for Fed chair would be reviewed by the Senate Banking Committee and require confirmation by the full Senate, setting the stage for a contentious fight over the future leadership and independence of the nation's central bank.
Solange Reyner ✉
Solange Reyner is a writer and editor for Newsmax. She has more than 15 years in the journalism industry reporting and covering news, sports and politics.
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