The federal reserve can start with the Supreme Court

Since his return to the White House, he demanded a reduction in federal reserve rates and the chairman of the board of directors, Rotini, Jerome Powell, for not doing so. After he was able to shoot Powell and then retreat, Trump rose He threatened to shoot the ruler Lisa Cook If you do not resign.

For her part, Cook said it He will not be intimidated in movement He planned to refute the mortgage fraud charges from the Housing Officer in the Trump administration. This raised the issue of the duration you may choose to serve.

Cook joined the Federal Reserve in 2022 after it was exploited by President Joe Biden to fill an endless period that ended in 2024, then it was reset. So you can stay in the Federal Reserve until 2038, although conservatives do not usually serve their periods for 14 years.

“However, the Federal Reserve has increased political football,” Ian Katz, the administrative partner in the capital Alfa Partners, said in a memorandum on Wednesday. “Trump was clear that he wanted to put loyalists in the board of directors. As a result, some conservatives may choose to stay in the board of directors so that the president is from their political party itself in the White House – which makes the federal reserve in this way like the Supreme Court.”

During, Trump named Stephen MiranChairman of the Economic House of Economists at the White House, to fill a vacancy on the blackboard left by Adriana Koger, which stepped before the end of her term in January.

Trump’s call to low rates has been supported. More than that, Miran also Cowrotte paper in 2024 Call Comprehensive reform from the Federal Reserve Bank This reduces his independence.

This can be treated in Cook’s decision on the duration of which it will remain. In his memo, Katz noted that “the conservatives in the past have resigned without concern that the president would run an alternative that is not a strong believer in the independence of the Federal Reserve.”

Likewise, Powell’s private plans are scrutinized. While he has A term as Chairman of the Board of Directors It ends in May, and his mandate extends as a ruler to January 2028.

Treasury Secretary Scott Bessin said that Powell should step down as a ruler when his term ends as a president, saying that this is the tradition. Powell refused to say what he would do.

The risks can exceed the low rates of federal reserve bank. Analysts at Jpmorgan warned that the appointment of Miran represents “I am an existential threat” To the Federal Reserve because it indicates the intention to amend the Federal Reserve Law and change the authority of the central bank.

Divide decisions

It is not clear whether Miraan will be reset to the Federal Reserve where the White House is looking for someone to replace Powell as president. But in both cases, the Federal Reserve will have three specific rulers from Trump.

This is certainly not sufficient for the impact of decisions in the 12 -member Federal Open Market Committee, which also consists of regional federal chairperson presidents. But if Trump is able to name a fourth ruler, this is sufficient to determine the balance of the seven -member council.

like Intuition Recently indicateThe majority of the Board of Directors will give Trump appointed authority over the budgets of the Federal Reserve Bank, and even the selection of regional Federal Reserve Chairmen. These presidents are appointed by federal regional bank managers, but they are Taking into account the approval of the council. In February, there are five -year periods for all bank presidents Its validity is scheduled.

With FLX’s Federal Reserve formation, a more divided era may also wave the Supreme Court.

The federal reserve decisions are usually unanimously, even though the opposition vote is rare. In contrast, the Supreme Court is rarely unanimously, while divided decisions along the ideological lines are common.

Perhaps the Federal Reserve meeting in July was a preview of what will happen as two conservatives were appointed by Trump on the low interest rates, which led to the continuation of the majority that has kept fixed rates.

Despite Powell Open the door to reduce the rate At the September meeting, this does not guarantee consensus either because other FOMC members are still wandering, like President of the Federal Reserve in Kansas City, President Jeffrey Schmid.

This creates Another FOMC meeting with opposition voices. In addition, the frequency of any subsequent discounts is not clear, providing more feed for discussion in the central bank with the payment of officials appointed from Trump for the Dovish policy.

Like the President of the Supreme Court of the Supreme Court, the Federal Reserve Chairman represents only one vote, but also the first among the extension of major influence outlets. So whoever replaces Powell may need to rely on their powers to persuade the Federal Reserve Bank with more conflicting opinions.

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