Trump will end the Fed’s autonomy. This is the way he tried to go | Federal Reserve

when Donald Trump Strengthened his campaign to influence the U.S. Federal Reserve, he traveled less than a mile from the White House to Visit the Central Bank Headquarters. But one of the aides to the U.S. president is about 500 miles south when the administration thinks how to really get what it wants.

Apartment above Four Seasons Hotel AtlantaGeorgia is at the heart of a remarkable struggle for the Fed to come, and the independence of the power of its largest economy in the world.

For a generation, the president respects the Fed’s autonomy. They may not agree with their decision. But they allow their long-term appeals to be in the best interest of the economy, even if they cause short-term political discomfort.

Trump ignored this precedent.

He has been blasting the Fed openly and relentlessly since returning to office in January – calling its chairman, Jerome Powell“idiot,” “numb” and “catastrophe,” and accused the central bank of failing to lower interest rates to damage the U.S. economy.

Trump escalated his attacks when the Fed refused to lower interest rates in five straight meetings, even suggesting (without evidence) that the billion-dollar renovation of his Washington headquarters was linked to fraud.

But policy makers hold this line. As most pricing officials want to wait and see and understand the impact of Trump’s policy, from trade wars to deportation, on the economy, they sit in their hands.

Fed Probably on the cusp of the recovery rate reductionPowell has A clear rate is unlikely to drop As the president wants it.

So, how does Trump really get what he wants?

Back to that apartment in Atlanta. Lisa Cook was allegedly appointed by Joe Biden as a respected economist appointed by the Federal Reserve Committee in July 2021. Trump officials claimed she took out a mortgage that listed the property as her primary residence – and took another mortgage two weeks later, listing her principles in Ann Arbor, Michigan.

Allegations – similar to government charges Stay balanced with other opponents – Unproven. But that didn’t stop Trump from immediately asking Cook to resign.

While cooking Refused to be “bullied”he tried to fire her. Cook insists Trump has no right to do so, her lawyer Guaranteed to sue the government Remove her from her position in the bidding.

The Federal Open Market Committee (FOMC) set by the Federal Reserve is in Trump’s eyes. There are 12 seats around the table, filled by five representatives of the local Reserve Bank and seven governors.

Once appointed, it will be difficult for the Fed to replace the governor. The entire term lasted 14 years, and in theory they were able to see the economy longer than the presidential administration working in a four-year cycle.

Cook’s term does not expire until 2038. Now, her future at the Federal Reserve seems to be settled in court. However, Trump’s willingness to exert control over the central bank and its exchange rate setting committee did not end.

He has Nominate an ally Sitting behind the Fed’s board committee, another Biden-appointed Adriana Kugler exported earlier this month. Two other governors have publicly supported the president, and the administration reportedly included a potential successor in Powell.

Powell’s term as chairman of the Federal Reserve will end in May. His term as governor did not expire until January 2028, but the resigned chair usually leaves the board at the same time.

So far, the Fed has ignored Trump’s demands. However, each departure allowed him to build influence on his policy committee. Like the Supreme Court, these nominations will have an impact in the coming years.

The government is arguing about apartment mortgages in Atlanta that should include another official on the Fed’s board. Who knows what the next so-called reason is, if there is another reason.

Of course, getting Trump’s support today does not guarantee tomorrow’s support.

When he used Powell to lead the Fed eight years ago, the president made a distinctly different sentence from the judgment he now frequently posted on social media. “He’s strong, his commitment is smart,” Trump said.