Cook, accused of mortgage fraud tied to past home loan applications, says she will legally challenge her dismissal—setting up what could become a landmark case over the President’s ability to remove Fed officials “for cause.”
The editorial notes Trump doesn’t need this fight—he already has sway over policy through upcoming Fed appointments, including Powell’s replacement next year. Still, the risk is clear: a politicized Fed may deliver short-term wins but undermine long-term credibility and stability.
My Add: Since Powell refused to bow to Trump’s pressure to cut rates—and because Trump has no direct power over monetary policy—making the Federal Reserve “his house” has become a top priority. At one point, this even manifested in a threat to fire Powell for cause over the high costs of the Fed’s new building and renovations. That idea faded after likely legal advice, but the desire for control never went away.
What would that majority mean?
Now, a Trump-dominated Board wouldn’t necessarily slash rates to 1% overnight just because the President wants it. But the bias would almost certainly tilt more dovish, giving the White House outsized influence over monetary policy. Unsurprisingly, the bond market isn’t comfortable with this scenario—the 2s–30s yield curve has steepened to its widest since January 2022, reflecting fears of inflation risks and political interference at the Fed.
The USD could face volatility—short-term gains on looser policy expectations, but longer-term downside if credibility erodes. Meanwhile, gold and inflation hedges may attract renewed flows if markets start pricing in a more politically driven Fed.
This article was written by Greg Michalowski at investinglive.com.Hence then, the article about wsj what if trump runs the federal reserve was published today ( ) and is available on forex live ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
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