Committee member urges preserving Federal Reserve�regional structure as a guardrail for independence
June 12, 2026 | Financial Services: House Committee, Standing Committees - House & Senate, Congressional Hearings Compilation, Legislative, Federal
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Committee member said at a House Financial Services Committee hearing in Oklahoma City that the Federal Reserve 's regional structure remains central to preserving the central bank's independence.
"The presence of the Kansas City Fed's branch here in Oklahoma City is reflective of one of the founding principles of our Federal Reserve System," the committee member said, arguing that regional diversity helps build the public trust necessary for the Fed to succeed.
The committee member reviewed U.S. central banking history, calling the Federal Reserve "our third attempt at the creation of a central bank," and said the structure established in 1913 "—12 regional banks and a Board of Governors—was designed to distribute power and perspective across the country.
The speaker stressed that each of the 12 Reserve Banks conducts independent economic research using local data, so the Federal Open Market Committee does not rely on a single institution's view of the economy. "That diversity of perspective isn't just good policy. It is itself a form of independence," the committee member said, pointing to regional strengths from Oklahoma's energy corridor to San Diego's innovation economy and New York's financial markets.
The committee member linked that structural independence to the Fed's statutory duties: "Congress gave the Federal Reserve two jobs, price stability and maximum employment," the speaker said, noting that those decisions affect grocery prices, mortgage costs and job availability for working families.
As a cautionary note, the committee member recalled the early 1970s, saying political pressure to keep rates low contributed to a decade of inflation that harmed working families, and argued the current structure was designed to prevent similar outcomes.
Closing the remarks, the committee member said transparency and congressional oversight are part of what makes the Fed's independence legitimate, that the witnesses present would help the task force assess what is working and what could be strengthened, and "I look forward to the testimony today," before yielding back to the chairman.
"The presence of the Kansas City Fed's branch here in Oklahoma City is reflective of one of the founding principles of our Federal Reserve System," the committee member said, arguing that regional diversity helps build the public trust necessary for the Fed to succeed.
The committee member reviewed U.S. central banking history, calling the Federal Reserve "our third attempt at the creation of a central bank," and said the structure established in 1913 "—12 regional banks and a Board of Governors—was designed to distribute power and perspective across the country.
The speaker stressed that each of the 12 Reserve Banks conducts independent economic research using local data, so the Federal Open Market Committee does not rely on a single institution's view of the economy. "That diversity of perspective isn't just good policy. It is itself a form of independence," the committee member said, pointing to regional strengths from Oklahoma's energy corridor to San Diego's innovation economy and New York's financial markets.
The committee member linked that structural independence to the Fed's statutory duties: "Congress gave the Federal Reserve two jobs, price stability and maximum employment," the speaker said, noting that those decisions affect grocery prices, mortgage costs and job availability for working families.
As a cautionary note, the committee member recalled the early 1970s, saying political pressure to keep rates low contributed to a decade of inflation that harmed working families, and argued the current structure was designed to prevent similar outcomes.
Closing the remarks, the committee member said transparency and congressional oversight are part of what makes the Fed's independence legitimate, that the witnesses present would help the task force assess what is working and what could be strengthened, and "I look forward to the testimony today," before yielding back to the chairman.
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