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Trump seeks more paths to shape Fed policy committee influence
A Supreme Court ruling kept Fed Governor Lisa Cook in her post, but the administration is continuing a bid to remove her over an alleged mortgage-document misstatement.
U.S. President Donald Trump has found his efforts to reshape the Federal Reserve leadership stalled by court decisions and Senate pushback, but Reuters reports he may still have up to four remaining opportunities to increase influence over the central bank's policy committee.
Reuters says Trump has so far backed Fed Chairman Kevin Warsh despite Warsh sidelining interest-rate guidance after taking over in June, while Trump has continued to press for lower rates. Trump has also characterized the Fed's board as potentially hostile and a political obstacle to his preferences.
The fight remains tied to personnel battles, including Fed Governor Lisa Cook, appointed by former President Joe Biden in 2022 to a term running until 2038. Reuters notes that an earlier case to remove Cook was upheld by the U.S. Supreme Court, which affirmed the president cannot remove a Fed governor without adequate cause and must follow a clear process grounded in evidence.
Reuters adds that the administration is still pursuing the Cook matter after the Supreme Court ruling, arguing that a misstatement on a mortgage document years ago is adequate cause. The White House has demanded Cook respond by Wednesday to a letter laying out the reasons for the proposed action, according to Reuters.