Warren urges Fed Chair Powell to prevent DOGE influence on Federal Reserve

During a Senate Committee on Banking, Housing, and Urban Affairs hearing, Senator Elizabeth Warren urged Federal Reserve Chair Jerome Powell to collaborate with Congress in preventing a DOGE takeover of the Federal Reserve and resist any conspiracy to dismantle the Consumer Financial Protection Bureau (CFPB).

Senator Warren expressed concern over the economic instability attributed to President Trump and Elon Musk. She highlighted that Musk's DOGE is allegedly interfering with the Treasury's payment systems, raising concerns about potential unauthorized access to Americans' financial data. Warren criticized Treasury Secretary Bessent for shifting blame onto the Fed by suggesting that DOGE cannot interfere because "The Fed is in control," when in fact, "The Fed simply executes the transactions Treasury instructs."

Warren emphasized the importance of maintaining the CFPB's operations, asserting, “Do not make the Federal Reserve an accomplice to this illegal act and forever sully the reputation of the Fed. Keep the CFPB funded, as the law requires.”

Chair Powell was urged by Warren to ensure cooperation with both parties in Congress should DOGE attempt further incursions into federal payment systems. She also criticized recent actions taken by Powell under Trump's administration which she believes have undermined diversity efforts and increased risks within big banks.

Warren concluded by urging Powell not to succumb to political pressures that could damage both his legacy and the independence of the Federal Reserve.