Trump's moves put Federal Reserve independence to two early 2026 tests

President Trump has intensified efforts to reshape the Federal Reserve, setting up two major tests of the central bank’s independence early in 2026: his imminent choice to replace Jerome H. Powell as Fed chair, and a Supreme Court hearing on his attempt to remove governor Lisa D. Cook.

Mr. Trump has said anybody who disagrees with him will never get the top job at the Fed, prompting concern that his nominee will prioritize pleasing the president. The contest has narrowed to a few candidates, with Kevin A. Hassett described as the front-runner and Kevin M. Warsh and Christopher J.

Waller also under consideration. In mid-December the Fed’s seven-person board unanimously approved reappointments for 11 regional reserve bank presidents, settling fears Mr. Trump might block those renewals to influence policy decisions that are voted on by the 12-member Federal Open Market Committee.

The president has tried to fire Ms. Cook, citing what the article calls unsubstantiated allegations of mortgage fraud; her lawyers and many legal experts say the ouster was a flimsy pretext. The Supreme Court will hear arguments in the case on Jan. 21. Analysts warn that a ruling for the administration could give the president a clearer path to remove Fed officials, while a ruling for Ms.

Key Topics

Politics, Donald Trump, Federal Reserve, Jerome Powell, Lisa Cook, Supreme Court