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Donald Trump President of Washington, DCKo East Washington, DC Washington, DCE East Lider speaks Washington, DC, August 18, 2025.
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President of Donald Trump Lisa Cook is more than someone to shoot: It’s a maneuver, if successful, it would be a seismic change in favor of an organization that was considered above age policy.
Since taking office in January, Trump Feed has put directly in the cross-power of the executive power. The Central Banker has confirmed the fees to lower the chair to threaten Jerome PowellAnd now he has taken the unprecedented step to try the unrepatured chef.
From the perspective of the President, he wants to reform what has been an organization without an organization, often guilt Inflation This hit the US after Pandemia Covida. Trump sees lower interest rates as a means of managing the federal debt of inflammation, while otherwise promotes the market of housing that has been a counterweight Growing economy.
However, legal wisens and financial market experts and current Fed officials, but not only Trump movements, threatened to be more political, but would weaken the key pillars of the American financial system.
“We are on the road that will bring the wear of the central bank,” said the judge Kathryn, Professor of Columbia Law School. “It would be very expensive for the loss of credibility that the FEDs try to build long-term health,”.
In the case of the FEDs Independence is the term used to describe its freedom from the external political impact to determine the policy that is the best for the US economy. This is especially true if these decisions are unique, such as the Federal Market Federal Commission creates interest rates to reduce inflation.
But there is more than three basis-free rate levels.
What controls the board and what
Trump should obtain the way most members of the Governing Committee wants, and right now the evidence must be sure that it can be sure that such a goal can achieve.
The seven-member governors, for example, has regulatory and enforcement on banks.
In addition, 12 members set the interest rate while governors establish only the discount rate, and that establish interest in interest in reservation balances, it also serves money to save money and a kind of guardrail for funds.
Finally, the Commission has control over the prestigies of the First Presidents of the Region, with many names coming in 2026.
The Fed has been embedded within these responsibilities to ensure the integrity of the Treasury system and maintain a stable dollar.
In other words, September is more than the cut rate.
“The most serious danger, I think people trust the Fed table, I think Trump is what he does herself,” said Robert Hockett Cornell Law School. “If Trump gets it, the Fed board is only suggested by the rubber seal. Basically, any Nutjob that enters the White House will set the monetary policy from now on.”
Hockett, the same kind of halinflation may have been in the classical Latin American banana republic when the dictators have established a monetary policy, or because Turkey has lived in recent years because the dictator has established a monetary policy. “
What Trump wants to achieve
Due to the part of the administration, tenant trumps are largely believed in the Fed independence but the AMO needs to run the central bank.
However, the President has given the litmus test Candidates for the blank vacancies The willingness to lower the rates, and in the past, he defended to say at Fed’s rate decisions among other measures that may be intrusions in the central bank.
“I don’t think Fed is the weakness of independence. I think the system requires a wholesale revression and the president of Trump has been a role in the name of Fed, climate change and the issues of diversity and inclusion.”
In fact, the idea that the Fed needs a review is supported on the street street.
Mohamed El-Eran, Pimco Executive and now the main major consultant to Allianz, recently deviates as a chair to avoid the only fight against independence that is happening now. He also said that Fed’s policy mistake helped to precipitate the current battle.
“This is the exact world that I was worried,” El-Erian said on Friday CNBC. “Fed are weak in so many different fronts, and I am afraid that I am now afraid to go down to this path.”
El-Eraite reforms, after the Bank of England and “External Members” lead to its Polician group “that helps reduce the risk of difference”.
In addition, the Fed said he should review the goal of 2% inflation, something he has repeatedly said on the table.
Final game
However, critics say that Trump is what the structural reform is about the empty reform.
“This is a story about trying to dissolve what was 90-year independence,” Roger Ferguson said by Fed Vice Ferguson in CNBC. “The whole goal was to provide FEDs independence, which is very important, that establishes money policy. And now, for the first time, we are seeing the correct effort to weaken this.”
Trump will be successful that is another matter.
Today, Christopher Waller and Michelle Bowman has named two, on the board. Stephen is Miran Senate confirmation waiting Adriana Kugler’s resignation to fill the empty seat. Powell must leave the next May when he runs out of the chair, which would create another vacuum and would give the President five seats.
However, counting all these members as automatic votes is dangerous.
Waller and Bowman have shown strong independent stripes, taking out-of-consensus and taking the positions of vulnerability, and are not “ideal for the trump”, Cornell teacher said.
“It is unfair that sitting governor is willing to participate in hacks,” the judge has added, Columbia professor.
It is also a potential way to classify Forensic tests This will focus on the “cause” if Trump has a chef or anyone else to get rid of it.
When the President may succeed, it can have extensive effects in economics and markets, Krishna Guha, Global Policy and Central Bank Strategy in Evercore ISI.
“We believe that it must be a basic case based on this point in 2026 and in practice. That is it. It should be taken very seriously, that the probability of breaking past practice is not important to have important implications in the markets.” Guha said in a last note.
Even the participations are high as Fedek organizations.
“For independence, there is never threatening independence as a republic-feeding threat as a republic right now, thanks to what Trump does,” Hockett said. “I think the confidence of our long-term central bank and will take another success in our currency.”
