Ex-New York Fed President Bill Dudley says despite attempts by the White House to erode the Federal Reserve's independence, Powell demonstrated that he remains firmly in control (via @opinion) https://t.co/POi3kCTHKe ...

Group 1 - The Federal Reserve is expected to announce its first interest rate cut of the year on September 17, potentially leading to a series of reductions that would lower borrowing rates for businesses and consumers [1] - Economists anticipate a quarter percentage point cut, as reports indicate a weaker jobs market than previously believed, with expectations of one or two more rate cuts in 2025 [1][6] - The current benchmark federal funds rate has remained unchanged at 4.25% to 4.5% since December, when the last quarter percentage point drop was announced [6] Group 2 - President Donald Trump is attempting to exert greater influence over the Federal Reserve, raising concerns about the central bank's independence from political pressures [2] - The Trump administration has been pushing for aggressive rate cuts and has taken steps to appoint his nominees to the Fed's board of governors, including the recent confirmation of Stephen Miran [3][4] - Trump publicly urged Fed Chair Jerome Powell to cut interest rates more significantly than previously considered [4]

Federal Reserve Independence & Political Interference - The core issue revolves around the independence of the Federal Reserve from political interference, particularly from the executive branch [2][7][13][26] - Concerns are raised that attempts to undermine the Fed's independence could weaken the American economy, potentially leading to increased costs and uncertainty for Americans [26][27] - The legality of President Trump's attempt to remove Lisa Cook is questioned, given the Federal Reserve Act of 1913 and the requirement for "cause" for dismissal [12][24] Lisa Cook's Situation - Donald Trump reportedly attempted to fire Lisa Cook, the first black woman on the Federal Reserve Board [1] - Lisa Cook's qualifications for the role are highlighted, noting her extensive experience and confirmation by the Senate for a 14-year term extending to 2038 [4][5][6] - The allegations against Lisa Cook are described as "baseless" and lacking due process, with concerns raised about the lack of investigation or legal basis for the action [1][17][18][20][22][23] Legal & Constitutional Aspects - The Supreme Court case Trump versus Will Cox established the Federal Reserve as a quasi-private entity, independent from presidential whims [7][9] - The president's firing power is limited, requiring "cause" which is defined as proof of breaking the law or gross misconduct, not merely a tweet [10][24][25] - The action is viewed as a potential breach of legal and constitutional norms, with comparisons drawn to authoritarianism [26]

Donald Trump just tried to fire Lisa Cook, who is the first black woman to serve on the Federal Reserve Bo board, quote, effective immediately. In the face of baseless allegations made by the Trump administration, Cook said last week that she had no intention of being bullied and pledged to gather accurate information to answer any legitimate questions and provide the facts. Let's be very clear.Since Donald Trump came back into office, he has tried any way he can to chip away at the Federal Reserve's indepe ...