US Senator Elizabeth Warren issued a stark warning on Monday, declaring that former President Donald Trump's efforts to exert control over the Federal Reserve "undermines America all around the world." The Massachusetts Democrat delivered her remarks during a discussion at the National Press Building in Washington DC.
A Direct Attack on Central Bank Independence
Warren, who chairs the influential Senate banking committee, condemned what she described as Trump's latest attempt to weaken the Federal Reserve's cherished independence. Her criticism follows the opening of a Department of Justice criminal investigation into the current Fed chair, Jerome Powell.
"He's saying, 'I want to put my hands on the dials on monetary policy,'" Warren stated, referencing Trump's actions. "Jerome Powell and some at the Fed have resisted him and have said, very calmly, that they're going to continue to look at the economic data and make decisions based on what the economic data says."
She argued that Trump's manoeuvring is not only terrible for the domestic economy but also damages the United States' international standing. "The Fed has been the gold standard for data-driven monetary policy decision making," Warren said, "and Donald Trump is just burning that to the ground."
Building a 'Sturdy Big Tent' for Democrats
The speech, framed around "the Future of the Democratic Party, Building a Big Tent Ahead of 2026 Midterm Elections," served as both a critique and a blueprint. Warren asserted that for a party still reeling from significant losses in the 2024 elections, simply attacking Trump is insufficient to rebuild a winning coalition.
"A Democratic party that worries more about offending big donors than delivering for working people is a party that is doomed to fail – in 2026, 2028 and beyond," she warned. She emphasised the need to earn long-term, durable trust by focusing on policies that lower costs for average American families, even when it means confronting wealthy interests.
"We can't rebuild trust by staying silent about abuses of corporate power and tax fairness simply to avoid offending the delicate sensibilities of the already-rich and powerful," Warren added.
Learning from Trump's Rhetoric, Delivering on Policy
In a notable tactical observation, Warren suggested Democrats could learn something from Trump's campaign messaging, if not his results. She pointed out that Trump consistently promised to lower costs for families, a pledge that resonated with voters.
"Instead, costs are up because of Trump administration policies," Warren contended. "So this is the moment for Democrats to stand up and first call Trump to account for his betrayal to the American people but also to lay out our own agenda."
The event underscored the ongoing political battle over the stewardship of the US economy and the independence of its key financial institutions, setting the stage for the policy debates that will define the coming election cycles.
