As far as Donald Trump is concerned, the Federal Reserve is largely responsible for a sluggish economy that is trying to grow, but which is being hindered by high interest rates.
Trump has been going after Fed chair Jerome Powell for years, but now he is taking aim at another member of its board.
After reports surfaced of allegations of mortgage fraud against Federal Reserve Governor Lisa Cook, Trump is now demanding her resignation.
Trump has had an issue with Powell for years, and the pressure to have him step down was put on steroids after the president took back the White House.
The commander in chief has demanded that Powell step down time and again, but the chairman has refused, further stating that he would fight back if the president fired him.
That exact scenario, at least at one point, was on the table, as Trump explained, “I talked about the concept of firing him. I said, ‘what do you think?’ Almost every one of them said I should, but I’m more conservative.”
In reality, Trump knows that if he fires Powell, the resulting lawsuits would likely take longer than Powell has left in his term, so the president is just better off playing this out, no matter how painful it is for him.
With Trump having recently added an ally to the Federal Reserve's board, he is now taking a different approach, asking the board to revoke Powell’s powers.
Trump recently posted to Truth Social, "THE BOARD SHOULD ASSUME CONTROL, AND DO WHAT EVERYONE KNOWS HAS TO BE DONE!"
Powell has been hesitant to lower rates due to the uncertain impact of tariffs imposed by Trump against our trading partners, believing that their full effect may not be known for months to come.
So far, most vendors are eating the cost of the tariffs, but that cannot be expected to last forever, which is why Powell is holding off.
Cook is now the subject of mortgage fraud allegations, and with Trump smelling blood in the water, he pounced immediately to have her removed from her position.
The allegations against Cook are similar to what we have seen in the allegations against Sen. Adam Schiff (D-CA) and New York Attorney General Letitia James.
Trump posted to Truth Social, “Cook must resign, now!!!” He was also reportedly mulling having her removed, likely exploring his legal options on that front.
If Trump can have her booted, or if she resigns, it would give him the opportunity to place yet another ally on the board, all but guaranteeing that its members will do whatever he wants once Powell is gone.
