Cook’s potential exit hands Trump greater sway over Fed board shaping US monetary policy

While it is still uncertain whether President Donald Trump's dismissal of Federal Reserve Governor Lisa Cook who is preparing a legal challenge will succeed her anticipated departure gives him another chance to install a nominee more attuned to his monetary priorities The Federal Reserve Board of Governors commonly known as the Fed board is composed of seven members or governors who are nominated by the president and ratified by the Senate TRUMP SAYS HE S DEPENDABLY READY FOR LEGAL FIGHT AS OUSTED FED GOVERNOR PLANS LAWSUITIf Trump replaces Cook he would have named the majority of the Fed's governors strengthening his influence over the panel that guides U S monetary initiative Former President Joe Biden appointed Philip Jefferson Michael Barr and Cook to the Fed board in Trump's picks include Michelle Bowman in Christopher Waller in and Stephen Miran in Former President Barack Obama nominated Jerome Powell to the Fed board in Trump nominated Powell to his current role as Chairman of the Federal Reserve in and Biden reappointed Powell in TRUMP NAMES REPLACEMENT FOR FED SEAT STILL LOOKING FOR PERMANENT APPOINTEEWhen urged about replacing Cook Trump communicated reporters at the White House on Tuesday that he has certain very good people for that position We ll have a majority very shortly Trump announced So that ll be great Tensions between Trump and the Federal Reserve over monetary protocol have intensified in contemporary months Trump has placed the blame squarely on Chairman Jerome Powell for not lowering the federal funds target rate which he says could save the nation hundreds of billions of dollars Meanwhile Powell has kept the central bank s key borrowing rate target within a range of to maintaining a measured wait-and-see approach as agents gauge the economic effects of Trump s tariffs A LOOK AT THE UNFOLDING BATTLE BETWEEN TRUMP AND POWELL OVER FED POLICYCook's ascension marked a historic first as she became the first Black woman to serve as a governor on the Fed board Now her expected removal from that same role could mark another historic first As it stands Trump says Cook is fired effective without delay But Cook and her lawyer Abbe Lowell argue that Trump has no legal authority to remove her Her term on the Fed board runs until January The Federal Reserve acknowledged Cook's promising legal action and disclosed in a Tuesday message that the U S central bank will abide by any court decision Lisa Cook has indicated through her personal attorney that she will promptly challenge this action in court and seek a judicial decision that would confirm her ability to continue to fulfill her responsibilities as a Senate-confirmed member of the Board of Governors of the Federal Reserve System a Federal Reserve spokesperson wrote in a message to Fox News Digital