Trump's Strategic Moves to Influence the Federal Reserve
Federal Reserve Vice Chair Philip Jefferson, appointed by President Biden, remains undecided about staying after his term ends in 2027. Meanwhile, Trump seeks influence over the Fed, facing challenges from its structure and pending judicial decisions, particularly concerning the firing of Governor Lisa Cook.
In a potentially crucial development in President Trump's strategy to gain influence over the Federal Reserve, Vice Chair Philip Jefferson has not contemplated retaining his board seat after his term concludes in September 2027. Jefferson, an appointee of former President Biden, has a separate board position that extends until 2036.
Trump's inauguration marked a concerted effort to sway the central bank's policies, including attempts to lower interest rates and efforts to dismiss key figures like Fed Chair Jerome Powell and Governor Lisa Cook. Cook's potential ousting awaits a decision by the U.S. Supreme Court after being blocked by lower courts.
The Federal Reserve's seven-member board structure, designed to minimize electoral impact on monetary policy, poses significant obstacles for Trump's objectives. Unless circumstances change, Trump may not secure a majority on the board until 2028, the last full year of his presidential term.
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