White House · Donald Trump · Federal Reserve (FED) · Supreme Court · U.S. Treasury · Fortune Technology
Trump allies double down on efforts to reshape Federal Reserve
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President Donald Trump and his allies are renewing a push to reshape the Federal Reserve after the Supreme Court this week blocked an effort to fire Governor Lisa Cook.
Key facts
- Powell made that decision after the Justice Department launched a criminal probe into his handling of a $2.5 billion renovation of the Fed’s Washington headquarters that has seen significant cost
- The Atlanta Fed president will also vote on interest rates in 2027
- Kevin Hassett, director of the White House’s National Economic Council, publicly noted growing unease over Powell and dialed up criticisms this week
- President Donald Trump and his allies are renewing a push to reshape the Federal Reserve after the Supreme Court this week blocked an effort to fire Governor Lisa Cook
Summary
Top officials and outside allies are actively exploring ways to remove members of the Fed’s Board of Governors in Washington to clear the way for more of the president’s own picks, according to people familiar with the matter. Although the Supreme Court’s ruling reinforced the Fed’s independence from the executive branch, some Fed watchers noted the narrowness of the decision and cautioned it doesn’t completely shield the central bank from future political attacks. Trump told CNBC on Thursday that the court’s ruling was based on procedure, not merit, and his administration would begin a process to remove her from the central bank. “We’ll start the process and we’ll do perfect process and perfect procedure,” he said.