Firing of Fed Official Could Give Trump Control Of Interest Rates For Years

Saul Lub / AFP via Getty Images
The courts will decide whether President Donald Trump can remove Lisa Cook from the Federal Reserve Council.
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If the courts of President Donald Trump allow the removal of a major official in the field of federal reserves, his candidate may enjoy the authority to set interest rates and Trump wishes.
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Trump had appointed five of the seven conservatives with a federal reserve if he replaced Lisa Cook in the Federal Reserve.
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This will not constitute a majority in the 12 -member policy committee that determines interest rates, but conservatives are authorized to influence the identity of the remaining five voters.
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Trump has repeatedly demanded that the Federal Reserve for interest rates decrease, which may enhance the economy. However, experts say this would risk reducing the credibility of the Federal Reserve Bank and its ability to control inflation.
If President Donald Trump succeeds in removing the ruler of the Federal Reserve, Lisa Cook, the appointed banks can control the central bank for years to come.
Trump escalated his efforts to take control of the central bank in the country this week when he said he was shooting Cook, a member of the committee that determines the main interest rate for full moon, amid allegations of fraud on the mortgage. A lawsuit against Cook was filed to maintain its position on Thursday, claiming that its dismissal was “unprecedented and illegal.”
If Trump prevails in the legal issue, his candidates will have the authority to submit Trump’s rates of average. Some experts have warned that this step can reduce the reputation of the Federal Reserve to make decisions on the basis of the economy instead of politics, as well as harm its ability to control inflation.
Trump said that he will soon control the board of directors and ensure that the mortgage rates, which are affected by the rate of federal funds, will soon decrease.
“We will have a majority soon,” Trump said on Tuesday at a cabinet meeting. “So it will be great. Once we have a majority, housing will be swing, and it will be great. People are paying a very high interest rate.”
The Federal Reserve kept its main rate of constant throughout the year 2025, which prompted Trump to the President of the Federal Reserve repeatedly and repeated Jerome Powell, whose chair period has ended next May. The Federal Reserve was reluctant to reduce prices until it became clear that the definitions do not stimulate inflation, although Powell indicated last week that economic conditions may guarantee the change of policy when the Policy Committee meets next month.
The Federal Reserve has been prepared to resist the influence of the president, but it is not completely fortified, especially in the face of the type of attacks by Trump.
“While some guarantees exist, the challenges facing the independence of the Federal Reserve were not preceded,” said Victor Lee, a professor of honorary economics at Villanova and an expert at the FBI.
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2025-08-28 20:53:00