Trump can't pack the Fed board with allies now
A recurring subplot of President Trump's term has been a desire to replace Biden appointees to the powerful Federal Reserve Board of Governors — even ahead of their terms ending — with allies. That effort now looks dead in the water. Why it matters: Even if Trump succeeds in his efforts to fire governor Lisa Cook , or to oust any of the other three Biden-era holdovers on the seven-member board, a…
President Trump's desire to replace Biden appointees on the Federal Reserve Board of Governors has now come to a halt. Even if Trump manages to remove governor Lisa Cook, or any of the other three Biden-era holdovers, a Democratic-controlled Senate is likely to block any replacements deemed too aligned with the administration.
The president's aim is to dismiss Cook, accused of mortgage fraud, an effort currently blocked by the courts. The White House plans to hold a hearing on these allegations next month. Current Fed chair Jerome Powell and financial regulator Michael Barr remain on the board, with their terms ending in January 2028 and 2032 respectively. Philip Jefferson's term as vice chair concludes next September, though he will serve as a governor until 2036.
Traditionally, Fed governor spots have changed hands more frequently, especially after their time as chair or vice chair concludes. Powell, Barr, and Jefferson may prefer to leave their roles as governors before their terms end if they believe the Senate will block any replacements that do not uphold the central bank's independence.
Notably, Sen. Elizabeth Warren, who will chair the Senate Banking Committee responsible for advancing Fed governor nominees, has criticized chairman Kevin Warsh as a 'sock puppet' of the administration. Only one Senate Democrat, John Fetterman, voted to confirm Warsh.
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