'Uncharted Waters': Trump's attempt to take the guidance on the Fed

Copyright © HT Digital Streams Limit all rights reserved. Matt Grossman, Greg IP, The Wall Street Journal 6 min Read 26 Aug 2025, 04:42 PM IST is the chairman of the Federal Reserve Jerome Powell and Fed Governor Lisa Cook Photo: All Drago/Bloomberg News Summary The President’s intention to abandon the Governor Lisa Cook over the head of the central bank. President Trump’s attempt to fire the Governor of Federal Reserve Lisa Cook is the most dramatic step in his attempt to take control of the independent central bank and his extensive authority over interest rates. For months, Trump demanded the lower rates of the Federal Reserve to increase the economy, make housing more affordable and reduce the cost of the service of the national debt. He crowned Fed chairman Jerome Powell for not moving faster to cut them. By replacing Cook, he can add enough votes to the Seven Member Council of Governors to surpass Powell and move interest rates in his preferred direction. “To the extent that Fed Independence stands for anything, it stands for the idea that monetary policy should not be made by the whims of the sitting president,” Peter Conti-Brown, a financial and lawyer at the University of Pennsylvania, said late Monday night. “If we allow it to become the norm, it’s the end of the Federal Reserve independence as we know it.” Trump’s decision to remove Cook has compiled a clash on how much the president has at the Central Bank. Cook said late Monday night that Trump has no authority to fire her and that she will continue in her work. Her lawyer, Abbe Lowell, said Trump’s “claims do not have a proper process, base or legal authority. We will take the steps needed to prevent his attempted illegal action.” Trump’s move is coming at a fine moment. The Fed has kept between 4.25% and 4.5% interest rates for five direct policy meetings. Above the Fed’s 2% goal, but in a speech last week, Powell, who calls the risks to the labor market, began moving Fed officials to a possible interest rate cut as soon as next month. Governor Adriana Kugler, appointed by former President Joe Biden, has already given Trump a vacancy on the board, to which he nominated a close advisor, Stephen Miran. To keep rates steady, and instead fought for a cut. Long -term effect more significantly. Monetary policy by nominating governors. Inflation rate and therefore higher long -term interest rates. “Legislators responded to party lines.” This is blatantly illegal, and Trump knows it, “Rep. Don Beyer (D., Va.) said on X.” Trump keeps our financial system at risk of false claims of fraud – a violation he himself has been convicted. ” Sen Rick Scott (R., FLA.) Said Trump “Do the right thing to hold people accountable, protect American families and restore confidence in the Fed.” is because it has a free hand to make unpopular movements that retain the economy’s long -term health. Lev Menand, a professor at the University of Columbia, said. “We are in a fairly unknown waters,” he said. Already moved to reform the Fed. the White House to give away issues such as banking regulation, the Fed interference in its interest rate decisions can evade. Agency, made that Cook sought mortgages on two properties in 2021 – one in Michigan, the other in Atlanta – and both described as her primary home in papers submitted 14 days apart. duty or abuse to be charged. Daily market updates to get more topics #donald Trump #Federal Reserve #jerome Powell #US Monetary Policy #US Inflation Read Next Story