Republican lawmakers in the US Congress are intensifying their scrutiny of the Federal Reserve, while the Fed is facing stubborn inflation issues and its role as a banking regulator is being more widely questioned.

The prelude to the new effort will kick off on Tuesday at the first hearing of the newly established House special working group, which will focus on the Federal Reserve. On the same day, President Trump will deliver a speech in Congress, receiving a series of instructions to expand his power over independent government agencies.

Frank Lucas, a Republican from Oklahoma, said, "We need to pay special attention to using a task force to examine the Federal Reserve system, from the 1913 Charter to the present." He will chair a new group to review the Federal Reserve's monetary policy and banking regulatory practices.

At the time of the launch of the task force, the Federal Reserve is fully responding to signs of inflation recovery, concerned that the economy is heading towards stagflation and that the new tariffs threatened by Trump may push up consumer prices. The Federal Reserve must deal with this uncertainty under the leadership of a president who often denounces central bank policy-making, but he has eased criticism so far during this term.

Despite this, Trump's most famous ally and advisor, tech billionaire Elon Musk, has still targeted the Federal Reserve, accusing it of being "outrageously understaffed," a claim that Federal Reserve Chairman Powell disagrees with.

Lucas stated that a key issue facing the congressional task force is whether the Federal Reserve's role in economic and banking regulation has become too broad. This includes the Federal Reserve's dual mission given by Congress to promote price stability while maximizing employment. He added that the group would also consider issues related to regulatory roles that were not really thought of when Congress created the Federal Reserve in 1913.

The central bank has launched a five-year evaluation of its monetary policy strategy. Among other things, Federal Reserve officials will strive to address the question of whether their response to inflation was slow after the outbreak of the pandemic, as they were too focused on the employment aspect of their mission.

Arkansas Republican French Hill said in an interview last month, "I believe the main task of the Federal Reserve should be to stabilize prices." He is the highest Republican member of the House Financial Services Committee, which oversees the Federal Reserve. In January of this year, he announced the establishment of a new special working group under the committee.