There’s More at Stake Than Just Interest Rates. Here’s What Trump Could Do With the Whole Federal Reserve Toolkit
Talking Points Memo • • business
Key Points:
- The Supreme Court will hear arguments on whether President Trump can remove Federal Reserve Governor Lisa Cook without due process, potentially granting the executive unprecedented control over the Federal Reserve.
- Trump has previously pressured the Fed to cut interest rates for political and business gain, including attempting to remove Cook over alleged mortgage fraud and initiating a controversial investigation into Fed Chair Jerome Powell.
- If the Court allows Trump to remove Fed governors at will, he could manipulate interest rates and other Fed powers to benefit himself and allies, risking economic instability similar to crises seen in countries like Argentina and Turkey.
- Trump could use Fed authority to reward billionaire friends with favorable policies and punish political enemies by restricting their access to banking services, leveraging the Fed’s regulatory and supervisory roles over financial
