tl;dr
**Trump’s Push for Fed Control Sparks Legal and Policy Battles**
President Donald Trump has escalated his war with the Federal Reserve, vowing to secure a majority of Fed governors who will back his push to slash interest rates. During a Cabinet meeting, Trump declared, “We’ll have a majority ver...
**Trump’s Push for Fed Control Sparks Legal and Policy Battles**
President Donald Trump has escalated his war with the Federal Reserve, vowing to secure a majority of Fed governors who will back his push to slash interest rates. During a Cabinet meeting, Trump declared, “We’ll have a majority very shortly… Once we have a majority, housing is going to swing, and it’s going to be great.” His comments came hours after he moved to fire Lisa Cook, a Biden appointee, from the Fed board, citing a DOJ investigation into her mortgages.
Trump’s strategy hinges on replacing Fed dissenters with allies. He has already appointed two of the seven Fed governors and is set to install Stephen Miran, a top economic advisor, to complete the term of retiring Governor Adriana Kugler. With Miran’s appointment and upcoming vacancies, Trump claims he’ll soon hold the majority needed to reshape monetary policy. “People are paying too high an interest rate,” he argued. “We have to get the rates down a little bit.”
The president’s feud with Fed Chair Jerome Powell has intensified. Trump repeatedly accused Powell of stifling the housing market with “high interest rates” and vowed to “get that straightened out very quickly.” Powell, however, has resisted Trump’s demands to cut rates sharply, emphasizing the Fed’s mandate to balance inflation and employment.
Cook’s ouster has triggered a legal showdown. Her attorney announced she would sue to block her removal, while the Fed issued a statement defending its independence. “Long tenures and removal protections for governors serve as a vital safeguard,” the central bank said, vowing to “abide by any court decision.” Trump, when asked about the Fed’s stance, replied, “I’d abide by the court,” though he insisted he acted within his authority.
White House spokesman Kush Desai defended the move, calling it a lawful removal “for cause.” But critics warn that politicizing the Fed risks undermining its credibility. With Trump’s allies poised to dominate the board, the battle over interest rates—and the future of monetary policy—has taken a dramatic turn.
As the legal and political drama unfolds, one question looms: Can Trump’s vision for the Fed withstand the test of judicial scrutiny and economic reality?