What to Understand About Trump Weighing Extending Influence to Fed Banks

Federal Reserve Governance & Influence - The President's potential ousting of Governor Cook could create another vacancy on the Fed board, allowing for another presidential appointment [1] - Currently, there are two Republican appointees on the seven-member Fed board, with a third nomination pending [1] - If another governor steps down, the President could potentially secure a majority (four out of seven) on the Fed board [2] - A majority on the Fed board could potentially support the President's push for lower interest rates [2] Regional Bank Oversight - The Fed board has the authority to reauthorize the 12 regional bank presidents every 5 years [4] - The administration might consider exerting pressure on regional bank presidents through board members aligned with their views, particularly regarding interest rate policies [4] - This scenario is hypothetical but is being considered by administration officials [5]