President Donald Trump said during an Aug. 26 cabinet meeting that his administration “will have a majority shortly” on the Federal Reserve’s seven-member Board of Governors, a shift made possible by his attempt to dismiss Governor Lisa Cook for alleged mortgage irregularities. Securing four of seven seats would give the White House effective control over the board and greater sway on monetary decisions. In parallel, people familiar with the matter said the administration is studying ways to extend its influence to the Fed’s 12 regional banks, including tightening the vetting of their presidents and using a scheduled five-year review in February to reshape posts regarded as too hawkish. The effort follows Trump’s nomination of adviser Stephen Miran to an open governor slot and comes ahead of Fed Chair Jerome Powell’s term expiration in May 2026. Trump argued that gaining a board majority would pave the way for lower interest rates and revive the housing market, contending that “people are paying too high an interest rate.” The federal funds target range now stands at 4.5%–4.25%. Economists warn that overt political pressure could erode the central bank’s credibility, eventually pushing up long-term borrowing costs rather than reducing them. European Central Bank Governing Council member Olli Rehn said on Aug. 28 that undermining Fed independence poses “significant” risks for global financial markets and inflation. Editorials in the Financial Times, Nikkei and other outlets echoed those concerns, stressing that any perception of fiscal dominance over U.S. monetary policy could reverberate well beyond the United States.