Federal Reserve employees overwhelmingly donated their money on Democrats this election cycle, shelling out $552,000 for blue candidates compared to a measly $51,000 for Republicans, according to OpenSecrets.org.
The woeful underrepresentation of Republican supporters underscores concerns that the Fed has become politically unbalanced.
The Fed wields enormous power over the economy—its interest rate decisions impact mortgages, jobs, and inflation rates that touch all Americans. But with so few employees backing Republicans, there are growing questions about whether the Fed’s inner circle has shifted far to the left of the majority of citizens in the U.S.
Recent Federal Election Commission data reveals just how lopsided the donations are. For every dollar Fed employees gave to Republicans, they handed out nearly eleven to Democrats. Critics say this imbalance could point to a liberal culture within the Fed, with some questioning whether the institution is as “neutral” as it claims to be.
The Fed’s decision to slash its benchmark interest rate by 50 basis points on the eve of the election raised alarms that the move looked timed to boost the campaign of Kamala Harris. While the Fed has cut rates in election years, it had never done so for the first time so close to the election. The last time the Fed significantly cut the federal funds rate on the eve of the election was in 1984 but this was part of a cycle of cuts that had begun earlier.
Fed political donations
The Fed’s political support was not always so one-sided. In 2012 and 2014, Fed staffers gave slightly more to Republicans than Democrats. But beginning with 2016, when Trump won the presidency for the first time, donations have gone overwhelmingly to Democrats.
Some lawmakers are taking note.
“When you’ve got Fed employees almost exclusively bankrolling one party, it’s fair to ask if they’re even hearing the full range of voices in America,” one Capitol Hill staffer said. “This isn’t just about politics—it’s about ensuring America’s central bank reflects America.”
