On September 4, after Powell released signals for interest rate cuts on August 22, Trump sought to control the timeline of related events involving the Fed: Powell's attitude shifted: On August 22, at the Jackson Hole annual meeting, Powell released "interest rate cut signals" citing "changes in risk balance," raising the probability of a rate cut in September from 75% to about 90%. Fed Governor Cook was dismissed: On August 22, on the same day Powell spoke, Trump threatened to fire Fed Governor Cook again. On August 26, Trump dismissed Fed Governor Cook, effective immediately. Cook responded hours later, saying there was no reason to be dismissed and he would not resign. On August 27, a Fed spokesperson stated that Cook was still a Fed Governor and could participate in discussions until a decision was made. On August 28, Cook sued Trump for dismissing him from his Fed Governor position. On August 30, the judge did not make a ruling on the case and required both parties to submit follow-up court documents. Trump sought to control the Fed: On August 27, Trump stated that he would soon have a majority of seats on the Fed and might move Milan to another longer-term position at the Fed. Milan had previously only been a "temporary" governor. On August 27, according to foreign media reports, the Trump administration intensified scrutiny over the selection process for regional Fed chairpersons, extending its influence over the Fed to the regional Fed. Pending matters this week: The U.S. Senate Banking Committee will hold a confirmation hearing for Trump's nominee for Fed Governor, Milan, on Thursday morning local time. The Director of the Federal Housing Finance Agency, Perlman, will present the latest information on the mortgage fraud case involving Fed Governor Cook at 10 PM Beijing time on Thursday. (Jin10)
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Timeline: Powell signals rate cut, Trump seeks to control the Fed
On September 4, after Powell released signals for interest rate cuts on August 22, Trump sought to control the timeline of related events involving the Fed: Powell's attitude shifted: On August 22, at the Jackson Hole annual meeting, Powell released "interest rate cut signals" citing "changes in risk balance," raising the probability of a rate cut in September from 75% to about 90%. Fed Governor Cook was dismissed: On August 22, on the same day Powell spoke, Trump threatened to fire Fed Governor Cook again. On August 26, Trump dismissed Fed Governor Cook, effective immediately. Cook responded hours later, saying there was no reason to be dismissed and he would not resign. On August 27, a Fed spokesperson stated that Cook was still a Fed Governor and could participate in discussions until a decision was made. On August 28, Cook sued Trump for dismissing him from his Fed Governor position. On August 30, the judge did not make a ruling on the case and required both parties to submit follow-up court documents. Trump sought to control the Fed: On August 27, Trump stated that he would soon have a majority of seats on the Fed and might move Milan to another longer-term position at the Fed. Milan had previously only been a "temporary" governor. On August 27, according to foreign media reports, the Trump administration intensified scrutiny over the selection process for regional Fed chairpersons, extending its influence over the Fed to the regional Fed. Pending matters this week: The U.S. Senate Banking Committee will hold a confirmation hearing for Trump's nominee for Fed Governor, Milan, on Thursday morning local time. The Director of the Federal Housing Finance Agency, Perlman, will present the latest information on the mortgage fraud case involving Fed Governor Cook at 10 PM Beijing time on Thursday. (Jin10)