U.S. Senate Committee on Banking, Housing and Urban Affairs Ranking Member Elizabeth Warren sent a letter to Federal Reserve Governor Christopher Waller urging him to stop work on a proposal she said would restructure the Federal Reserve System by shifting more authority from the 12 regional Reserve Banks to the Federal Reserve Board in Washington. Warren argued that the plan, which she said Waller outlined in two recent speeches, would amount to a significant structural reform that should be enacted by Congress rather than by a single governor and appears inconsistent with the Federal Reserve Act. According to the letter, the proposal would require regional Reserve Banks to give up day-to-day control over functions including information technology, human resources, financial management, enterprise risk management and payments. Those functions would initially be placed under a single Federal Reserve leader, with later physical consolidation at one selected regional Reserve Bank acting as a contractor for each function. Warren said Waller had not clarified how that leader would be chosen, by whom or where the role would be based. The letter calls for all work to implement the framework to cease immediately and asks Waller to provide answers and requested documents by July 16, 2026.

Original source Back to tracker