Trump Seeks to Reshape Federal Reserve as Supreme Court Considers Firing of Governor

The case set to reach the Supreme Court on Wednesday centers on President Trump’s authority to fire Lisa Cook, a governor on the Federal Reserve Board. Beyond the specific dismissal, Mr. Trump has repeatedly signaled a broader aim to fill the Fed with political loyalists who would pursue sharp, swift interest-rate cuts; he has even suggested rates as low as 1 percent.

In court, the administration has argued it has the power and rationale to remove Ms. Cook over allegations of mortgage fraud, while Ms. Cook has disputed the charges and described the attempted firing as rooted in political pretense. Outside the courtroom the president has used more forthright language, boasting that he will soon have a Fed majority—“We’ll have a majority very shortly,” he said at one point.

Three of the seven Fed governors are his appointees: Michelle W. Bowman, Christopher J. Waller and Stephen Miran. Ms. Bowman and Mr. Waller have advocated for more gradual rate cuts than Mr. Trump prefers, while Mr. Miran has taken a more aggressive stance and has said he could return to the White House after serving on the board.

Mr. Trump may gain another appointment if Chair Jerome H. Powell leaves after his term expires in May; Mr. Powell could opt to stay as a governor through 2028, though Mr. Trump would still be able to designate a new chair, and an announcement is possible next week, according to the president’s aides.

Key Topics

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