In a recent development at the US Federal Reserve, a heated dispute between US President Donald Trump and board member Lisa Cook has taken center stage, overshadowing the upcoming Fed interest rate decision. The controversy arose as Trump attempted to dismiss Cook over alleged mortgage fraud accusations, which were promptly halted by a court ruling.
Trump’s persistent calls for interest rate cuts have added to the tensions surrounding the Fed’s upcoming two-day meeting to review the benchmark rate. Amidst this turmoil, the appointment of Stephen Miran as an interim solution to the board has raised speculation on how future policy decisions may be influenced.
Miran, set to occupy a vacant board position until January 2026, replaces a departed board member. The court’s intervention effectively stalls Trump’s agenda to remove Cook, while paving the way for Miran’s tenure which could shape the Fed’s monetary policy outlook and subsequently impact the broader economy.