After exerting extraordinary pressure on the U.S. Federal Reserve to lower interest rates, the Trump administration will have the opportunity to nominate at least one new Fed governor and a new Fed chair in the coming months. But unless the Supreme Court sharply increases the government's power to dismiss governors, which appears unlikely, the Federal Reserve will retain its independence, thus limiting the risk of significant financial market instability. Since taking office in January 2025, U.S. President Donald Trump has engaged in a sustained campaign against the Federal Reserve, challenging its independence. This has included frequent public attacks on Fed Chair Jerome Powell, and the initiation of criminal investigations targeting both Powell personally and the Fed as an institution. Trump has also taken actions to reshape the Federal Open Market Committee (FOMC) and influence its monetary policy stance. In 2025, he nominated, and the Senate confirmed, a known monetary policy...
