Warren Urges Fed's Waller To Halt Work On Reserve Bank Proposal
Source: Bloomberg
July 2, 2026 at 6:00 AM EDT
Senator Elizabeth Warren is asking Federal Reserve Governor Christopher Waller to halt his efforts to overhaul operations at the central bank’s 12 regional branches.
Warren, the top Democrat on the Senate Banking Committee, said in a letter sent to Waller on Wednesday that his proposal for the reserve banks appears to be inconsistent with federal law and suggested it could erode the central bank’s independence. While Waller has some oversight power as chair of the Fed board’s reserve-bank affairs committee, the regional banks are set up as largely autonomous entities with control over their own day-to-day operations.
“Rather than a serious effort to reform the Federal Reserve System, the proposal appears, instead, to be a thinly veiled effort to please President Trump, who seeks additional power over regional reserve bank presidents,” Warren wrote in the letter obtained by Bloomberg News. “I request that you immediately stop all work on this proposal and provide additional information to Congress.”
A Fed spokesperson confirmed receipt of the letter, but declined further comment. In two speeches this spring, Waller outlined a vision to consolidate certain back-office functions, like human resources and IT, at the reserve banks. He also said the regional leaders agreed on a framework to do so. Fed officials and staffers across the system worried Waller’s push would ultimately drive power and decision-making away from the regional banks toward Washington, and open the Fed up to more political pressure.
Read more: https://www.bloomberg.com/news/articles/2026-07-02/warren-urges-fed-s-waller-to-halt-work-on-reserve-bank-proposal
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Link to Sen. Warren PRESS RELEASE - Warren Presses Fed Governor Waller to Cease His Effort to Unilaterally Diminish Power of Regional Fed Banks in Service of President Trump
Link to Sen. Warren LETTER (PDF) - https://assets.bwbx.io/documents/users/iqjWHBFdfxIU/rmrhNriwuTq8/v0