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Trump says he’ll have a majority at the Fed that will help him push rates lower

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President Donald Trump’s recent dismissal of Federal Reserve Governor Lisa Cook has sparked speculation about the future of the Fed board and its impact on U.S. monetary policy. While the outcome of this legal challenge remains uncertain, Trump’s potential to appoint a new nominee could shift the balance of power within the Federal Reserve system.

The Federal Reserve Board of Governors, responsible for guiding monetary policy in the United States, consists of seven members nominated by the president and confirmed by the Senate. With Trump’s history of appointing governors like Michelle Bowman, Christopher Waller, and Stephen Miran, the potential replacement of Cook could further solidify his influence over the Fed’s decision-making process.

Lisa Cook attends a meeting at the Federal Reserve building in Washington, D.C., on June 25, 2025. (Saul Loeb/AFP/Getty Images)

Former President Joe Biden appointed Philip Jefferson, Michael Barr, and Cook to the Fed board in 2022, while Trump’s picks have included prominent figures like Jerome Powell. Tensions between Trump and the Federal Reserve have escalated in recent months, with Trump advocating for lower interest rates to stimulate economic growth.

President Donald Trump speaks to Fed Chair Jerome Powell during a tour of the Federal Reserve in Washington, D.C., Thursday, July 24, 2025. (Official White House Photo by Daniel Torok)

As Trump considers potential replacements for Cook, the future of U.S. monetary policy hangs in the balance. Powell’s cautious approach to interest rate adjustments has drawn criticism from Trump, who believes that lower rates could benefit the economy.

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Cook’s potential removal from the Fed board, if successful, could mark a significant shift in the composition of the Federal Reserve. Trump’s assertion of authority in appointing governors reflects his ongoing efforts to shape monetary policy to align with his administration’s priorities.

Federal Reserve Chairman Jerome Powell swearing in Lisa Cook as a member of the Board of Governors of the Federal Reserve System in May 2022. (U.S. Federal Reserve photo)

Despite Cook’s immediate dismissal by Trump, her legal challenge and potential court action could prolong the uncertainty surrounding her position on the Fed board. The Federal Reserve has pledged to abide by any court decision regarding Cook’s status as a Senate-confirmed member of the Board of Governors.

This ongoing battle between Trump and the Federal Reserve underscores the complexities of monetary policy and the balance of power within the U.S. financial system. As the situation unfolds, the implications of Cook’s potential removal could reverberate throughout the Federal Reserve and beyond.

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