Natalie Sherman
New York business reporter

Economists say the Fed’s ability to make its interest rate decisions independent of politics is key to its credibility as an inflation-fighter.

But Trump’s actions this year have sparked concerns that the bank’s independence could be under threat.

He has tried to fire one of the Fed governors, Lisa Cook, accusing her of committing mortgage fraud. She maintains his claims are baseless. The Supreme Court is set to take up that case next month, but in the meantime she has been allowed to stay on the board.

Trump has also repeatedly threatened to fire Powell, calling him a “numbskull”, “not a smart person” and pursuing him over his handling of building renovations.

Separately, an unexpected, short-term vacancy allowed Trump to install a new board member, Stephen Miran, who said he would take a leave from his White House role as chair of the Council of Economic Advisers but not resign.

Miran so far has proven a reliable voice echoing the president’s call for more aggressive rate cuts.

Reuters