LI Rep. Andrew Garbarino says 'independence is essential' for Fed, amid president's attacks

WASHINGTON — Long Island GOP Rep. Andrew Garbarino on Monday was among congressional Republicans who joined Democrats with concern about a Trump administration criminal probe against Federal Reserve Chairman Jerome Powell.

"The Federal Reserve’s independence is essential to its mission and should not be undermined by political pressure," Garbarino, (R-Bayport), who holds a seat on the House Financial Services Committee, said in a statement, in a rare public break with the administration. That panel’s chairman, Rep.French Hill (R-Ark.), made similar comments.

President Donald Trump has long criticized Powell for not sharply cutting the Fed’s benchmark interest rates more aggressively, and Powell said the administration has launched an investigation of a $2.5 billion renovation of the Fed's headquarters and adjacent buildings.

But bipartisan backlash against what Powell depicts as an effort to influence Central Bank decisions on interest rates did not similarly alarm the Island’s other Republican congressman, Nick LaLota of Amityville.

LaLota, in a statement Monday, said, "If Powell did nothing wrong, the truth will set him free."

He added that taxpayers "deserve to know what goes into a building that costs 50% more than the New York Giants’ 82,500-seat MetLife Stadium — especially if an investigation reveals evidence of waste, fraud or abuse."

Technically, the Fed is not a taxpayer-funded institution, but self-funded, largely via interest income from government securities it holds. 

Long Island’s two Democratic members of the House were among the other lawmakers from both parties with concern that there is an effort to exert political influence on interest-rate decisions.

"We all want lower interest rates, but it’s essential for the strength of our economy that the Federal Reserve remain independent, and is not subject to political pressures," Rep. Tom Suozzi (D-Glen Cove), said in a statement.

Rep. Laura Gillen (D-Rockville Centre) said in a statement that she hopes an "independent investigation" can be concluded quickly and the Fed can return to its work.

"At a time of economic uncertainty in our country, it is critical that the Federal Reserve remain independent and free from political pressures and retribution," Gillen said.