President Donald Trump has intensified pressure on the Federal Reserve by demanding rate cuts, criticizing Chairman Jerome Powell, and threatening to remove dissenting governors. Governor Lisa Cook says she will not be bullied and plans to rebut mortgage-fraud accusations while retaining the legal ability to remain on the Fed board until 2038 after her 2022 appointment and reappointment. Federal Reserve governors typically step down before 14-year terms expire, but some may choose to stay until a same-party president occupies the White House, increasing politicization. Nominations such as Stephen Miran, who supports lower rates, signal potential shifts and more split votes on policy.
As President Donald Trump ramps up pressure on the Federal Reserve, the typically staid, consensus-driven institution could take on some qualities of the more bitterly divided Supreme Court. Since returning to the White House, he has demanded that the Fed cut rates and routinely insults Chairman Jerome Powell for not doing so. After teasing that he could fire Powell then backing off, Trump has threatened to fire Fed Governor Lisa Cook if she doesn't resign.
For her part, Cook said she won't be bullied into stepping down and plans to rebut accusations of mortgage fraud from a Trump administration housing official. That's raised the question of how long she might choose to serve. Cook joined the Fed in 2022 after being tapped by President Joe Biden to fill an unexpired term that ended in 2024, then getting reappointed. So she can stay on the Fed board until 2038, though governors typically don't serve out their entire 14-year terms.
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