Scoop: Key House Republican defends Fed against Trump interference
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Rep. Frank Lucas (R, OK.) in the Rayburn House Office Building on in Washington D.C. in 2012. Photo: Melina Mara/The Washington Post via Getty Images
The Republican leader of a congressional task force focused on the Federal Reserve tells Axios in an exclusive interview there is bipartisan interest in stronger guardrails around the central bank's independence.
Why it matters: The comments from Rep. Frank Lucas (R-Ok.) come as President Trump ramps up attacks on Fed chair Jerome Powell, stoking fears the White House might seek to remove him from the post.
What they're saying: Lucas said the task force has discussed the importance of Fed independence and how to build "the walls higher and stronger and taller."
- "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."
The big picture: Lucas said it would be difficult for Trump to fire the Fed chair, and noted that Powell has publicly vowed to finish out his term that ends next year.
- Lucas also pointed out that the Fed is more than just the single chair: The Board of Governors —a group of seven officials appointed by the president — weighs in on any interest rate policy decision. That could limit the effect of political influence.
- "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," Lucas noted.
Zoom out: The question is how much congressional leaders would resist any hint of politicization for future Fed appointees in the Trump era.
- Trump fired two Democrats on the board of the National Credit Union Administration, an independent regulator — a move that stoked fears about the fate of other independent agencies, like the Federal Reserve.
- That came after Trump said the Fed chair's "termination cannot come fast enough!"
- Trump on Monday demanded that Powell cut interest rates immediately, a call that spooked global investors who were already jittery from tariff uncertainty.
The intrigue: "I don't know that we need any extra excitement in the markets right now," Lucas said.
- "We have enough stuff going on. Every Treasury sale of debt instruments—whether it's bills, bonds, notes, whatever— is a 'hold your breath' moment," he added.
- "Generally when we're operating under great moments of stress, the more stability we can project in the system, the better off we are," Lucas said.
- He said that Trump was a "different president" with a lot of energy and enthusiasm: "While that has many great points, it also presents challenges for the market to try and figure him out. It's like our trading partners, how do they figure him out?"
What to watch: Lucas said Democrats were "very enthusiastic" about strengthening Fed independence. Republicans have warned about the Fed's political independence, though most recently in the context of mission creep with respect to social issues.
- "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."
The bottom line: "Everybody has a tendency to encourage and urge, but the Fed in my lifetime has maintained a level of independence," Lucas said.
- "I have great faith in President Trump, but he's not always going to be president — and we have to do the things that reflect whoever or whatever comes after him in the future."
