Divisions emerge within the Republican Party: Senators defend the independence of the Federal Reserve, opposing Vice President Vance's stance

According to the Zhitong Finance APP, a Republican senator from the U.S. Senate Finance Committee emphasized the importance of the Federal Reserve's independence on Sunday, which contrasts with Vice President JD Vance's statement that the president and elected officials should have a say in monetary policy.

Republican Senator James Lankford from Oklahoma stated in an interview that the Federal Reserve should independently set interest rates, while the president and Congress have different responsibilities. "We each play different roles. The Federal Reserve can perform best when it maintains its independence, but they are not completely detached from the American people," Lankford said. "Let us each do our part."

President Trump has been criticizing the Federal Reserve and its Chairman Jerome Powell for months for failing to cut interest rates. Last week, he announced plans to fire the Federal Reserve's first Black female governor, Lisa Cook, accusing her of involvement in mortgage fraud. Cook and her supporters claim this is merely an excuse to replace her with allies in the Federal Reserve.

Critics have condemned Trump's firing of Cook and the dismissal of the Bureau of Labor Statistics director a month ago, arguing that the Republican president is attempting to control an institution that has historically remained independent. Cook has filed a lawsuit to block the dismissal decision.

Vance stated last week that claiming the president cannot fire Federal Reserve officials or influence monetary policy is "absurd." "I firmly believe the President of the United States is more capable of making these decisions," he said.

In response, Lankford stated that he believes the Federal Reserve should set interest rates, while the president and congressional members should shape economic policy through tax and tariff policies.

Democratic Congressman Ro Khanna also supported the necessity of the Federal Reserve's independence in another interview, while simultaneously calling for Cook to publicly disclose her mortgage documents to ensure transparency.

"She should be transparent and let us see that this is just a political game," he said, "but this is not about the Lisa Cook incident itself; it is about Trump's behavior of intervening in the Federal Reserve and bullying the Federal Reserve, similar to Nixon." He referred to former President Nixon's pressure on the Federal Reserve to maintain low interest rates before the 1972 election.

Although Nixon won that election, he resigned two years later due to the Watergate scandal. Khanna pointed out that Trump's tariff policies are driving up inflation, complicating the Federal Reserve's actions to cut interest rates