Trump Attempts to Take Over Fed https://t.co/erRMCFdRqT
The Trump administration is reviewing options for exerting more influence over the Federal Reserve’s 12 regional banks that would potentially extend its reach beyond personnel appointments in Washington https://t.co/aopooqEseS
President Trump made it clear he is seeking more control of the Federal Reserve. https://t.co/WEzDYyfGdH
The Trump administration is weighing ways to expand its influence over the Federal Reserve by tightening oversight of how the 12 regional banks choose their presidents, according to multiple accounts of an internal review dubbed "Project 2025." Officials are examining whether the White House can gain a larger role in the selection process, potentially extending presidential reach beyond appointments made in Washington. The effort coincides with President Trump’s attempt to remove Federal Reserve Governor Lisa Cook over unproven mortgage-fraud allegations. Cook rejected the order, saying the president lacks legal authority to oust a governor without cause and declaring, “I will not resign.” Board members serve 14-year terms and can be dismissed only for cause under U.S. law. Economists and current and former central bankers warn the moves amount to the most serious challenge to Fed independence in decades. Reuters reported that investors demanded a higher premium on U.S. debt after the latest White House salvo, pushing the 10-year Treasury yield up 2.5 basis points to 4.30%. President Trump has repeatedly pressed Chair Jerome Powell to cut interest rates and publicly criticized the central bank’s policy stance. Critics say the new review, coupled with the attempted firing of Cook, risks politicizing monetary policy and unsettling financial markets at a time when the Fed is already navigating a slowing economy and lingering inflation pressures.
