Trump Team Weighing Options to Extend Influence to Fed Banks

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Fed Governor Lisa Cook, if it holds up in court, would give him an opportunity to a secure a majority on the seven-person Board of Governors. But the central bank’s Federal Open Market Committee, which is responsible for setting interest rates, also includes five regional bank presidents who — unlike the governors — aren’t nominated by the White House or confirmed by the Senate.Most Read from BloombergIn Trump’s DC Crackdown, the National Park Service Leads Homeless SweepsGermany Revives a Building Style With a Bleak History: Prefab HousingChicago Schools’ Late Pension Payment Magnifies Fiscal MessTo Boost Housing, Chicago Kills Parking MinimumsCentral Glasgow Could Be Poised for a RevivalScrutiny from the administration of the process for selecting and reappointing reserve bank presidents — responsibility for which is shared between the private-sector boards of those banks and the Board of Governors — would mark another extraordinary step in Trump’s ongoing campaign to influence monetary policy, which has traditionally been provided some insulation from political pressure.The Board of Governors is next scheduled to authorize the current roster of reserve bank presidents in a once-in-five-year exercise in February. That event now looms large in the wake of Trump’s declaration of Cook’s removal from her post, which followed allegations by the administration that she had engaged in mortgage fraud. Cook aims to contest the move, her lawyer said Tuesday.Several of the Fed’s regional presidents began to grow concerned earlier this summer about what Trump’s plans for the central bank could mean for their jobs, according to people familiar with the matter. The president’s announcement late Monday exacerbated those concerns, with presidents making a round of calls to each other about what Cook’s firing could mean for them, according to one person familiar with the matter.A Fed spokesperson declined to comment. The White House did not immediately respond to a request for comment.‘Stone’ Turning“This White House is turning over every stone to see where the levers are to change the Fed,” said Derek Tang, an economist at LHMeyer/Monetary Policy Analytics.One of those levers could be the vote to reauthorize regional bank presidents. Once the administration secures a majority on the Board of Governors, it could indirectly pressure Fed officials perceived as more hawkish by using their reappointment vote as a new tool at its disposal, according to Tang.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P Futures6,502.75 +6.75 (+0.10%)Dow Futures45,741.00 +99.00 (+0.22%)Nasdaq Futures23,642.00 +13.25 (+0.06%)Russell 2000 Futures2,396.20 +16.50 (+0.69%)VIX14.29 -0.56 (-3.77%)Gold3,451.20 +2.60 (+0.08%)PortfolioSign in to access your portfolioSign inTop gainersMDB MongoDB, Inc. 295.70 +81.36 (+37.96%)SATS EchoStar Corporation 58.76 +7.89 (+15.51%)NCNO nCino, Inc. 32.69 +4.00 (+13.94%)LUMN Lumen Technologies, Inc. 5.27 +0.58 (+12.37%)PCT PureCycle Technologies, Inc. 14.86 +1.26 (+9.26%)Top losersTIGR UP Fintech Holding Limited 11.57 -1.25 (-9.75%)NEGG Newegg Commerce, Inc. 60.89 -6.14 (-9.16%)LI Li Auto Inc. 22.60 -2.05 (-8.32%)KNF Knife River Corporation 82.76 -7.39 (-8.20%)SMMT Summit Therapeutics Inc. 24.81 -2.17 (-8.06%)Most activeWBA Walgreens Boots Alliance, Inc. 11.98 +0.06 (+0.50%)OPEN Opendoor Technologies Inc. 4.0200 -0.6800 (-14.47%)NVDA NVIDIA Corporation 181.60 -0.17 (-0.09%)PSNYW Polestar Automotive Holding UK PLC 0.4700 +0.3100 (+193.75%)NIO NIO Inc. 6.34 -0.36 (-5.37%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersNVDA NVIDIA Corporation 181.60 -0.17 (-0.09%)CRWD CrowdStrike Holdings, Inc. 422.61 +5.01 (+1.20%)LUMN Lumen Technologies, Inc. 5.27 +0.58 (+12.37%)SNOW Snowflake Inc. 200.39 +6.04 (+3.11%)CRWV CoreWeave, Inc. 96.93 +5.54 (+6.06%)Top economic events