Lawmakers are 'demeaning their role' by trying to influence the Fed, House finance chair says

Published On Sep 17, 2024, 1:14 PM

Lawmakers are publically lobbying the Federal Reserve about interest rate cuts, which has drawn criticism from Rep. Patrick McHenry (R-N.C.). He argues that such actions undermine the independent role of the Fed, especially as it prepares to cut rates for the first time since 2020. Democratic senators have called for a significant rate cut, and political comments around the Fed's actions have increased as the election nears. Some politicians believe they should influence monetary policy, which raises concerns about the Fed's independence.