Trump Weighs Tighter Oversight of Regional Fed President Picks

The Trump administration is exploring ways to expand its influence over the Federal Reserve’s 12 regional banks, according to people familiar with the discussions. Options under review include tightening oversight of how regional Fed presidents are chosen, a process that is currently conducted largely by each bank’s board with limited White House involvement. The deliberations come as the administration contests the appointment of Governor Lisa Cook. If her removal is upheld, the White House could gain a majority on the seven-member Board of Governors, potentially giving it greater sway over monetary-policy deliberations even though the presidents of the regional banks would continue to hold their seats on the Federal Open Market Committee. Any move to alter the long-standing balance between the central bank’s Washington board and its regional branches would likely draw criticism from economists and lawmakers who view the Fed’s quasi-independent structure as a safeguard against political interference in interest-rate decisions.