Trump holds up to four paths to reshape Fed policy team as Cook case stalls
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President Donald Trump's efforts to oust Federal Reserve officials have stalled in courts and the Senate, but he may still have as many as four opportunities to increase his influence over the central bank's policy committee. Fed Governor Lisa Cook, appointed by former President Joe Biden, faces a renewed removal effort by the administration, which has demanded she reply by Wednesday to a letter laying out its case. Trump has stood behind Fed Chairman Kevin Warsh even as Warsh sidelined the rate cuts the president has demanded.
Key Facts
- Trump may have as many as four opportunities to try to increase his influence over the Fed's policy committee.
- Fed Governor Lisa Cook, appointed by Joe Biden in 2022, serves a term lasting until 2038.
- The White House has demanded Cook reply by Wednesday to a letter laying out its case for her removal.
- Former Fed Chair Jerome Powell's term as governor lasts until early 2028, the final full year of Trump's term.
Cook Removal Effort
Fed Governor Lisa Cook, the first Black woman on the central bank's board, was appointed by former President Joe Biden in 2022 to a term lasting until 2038. Trump tried to fire her a year ago, but the U.S. Supreme Court affirmed that the president could not remove a Fed governor without adequate cause and a clear process. The administration now argues that a misstatement on a mortgage document years ago was adequate cause for firing Cook. The White House has demanded she reply by Wednesday to a letter laying out its case for her removal. Cook calls the administration's effort a pretext to gain sway over interest rate policy and will almost certainly continue to fight her dismissal.
Powell's Remaining Tenure
Jerome Powell, who led the central bank for more than eight years until May, has chosen to continue serving on the board. His term lasts until early 2028, the final full year of Trump's term. The end of Powell's tenure will provide the only certain Fed seat for Trump to fill during the remainder of his time in the White House.
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Trump holds up to four paths to reshape Fed policy team as Cook case stalls
