Trump’s Bid to Oust Fed Governor Lisa Cook Weakens Ahead of FOMC Rate Decision

Reports indicate that new evidence has undermined President Donald Trump’s attempt to remove Federal Reserve Governor Lisa Cook just days before a key Federal Open Market Committee (FOMC) meeting. Markets widely expect the Fed to cut U.S. interest rates soon, and Cook’s continued presence is seen as crucial in protecting the Fed’s independence from political influence.

Trump has long pushed for aggressive rate cuts, even considering firing Fed Chair Jerome Powell. While Powell has recently shown openness to easing policy, Trump’s focus shifted in August toward Cook, accusing her of mortgage fraud. However, Reuters revealed that Cook classified the disputed property as a vacation home, not her primary residence—undercutting claims of wrongdoing. Though the report did not release documents, this finding weakens Trump’s pretext for dismissal.

Legal experts note that the president cannot directly fire Fed Governors, making any such move highly controversial. If Trump succeeded, he could reshape the FOMC by installing a more compliant member, raising concerns about political interference in monetary policy. Analysts warn that such a violation of Fed independence could destabilize financial markets.

For now, Cook’s position appears secure, and the Fed is still expected to proceed with a rate cut. This development isn’t necessarily bullish for crypto or equities, but it prevents a potentially bearish outcome where Trump gained influence over monetary decisions. With markets already pricing in rate reductions, investors anticipate no major disruptions ahead of the meeting.

Ultimately, the evidence supporting Cook helps preserve institutional stability. For traders and crypto investors closely tracking Fed policy, the likely outcome remains a cautious status quo—one that avoids sudden shocks but keeps the focus on how much the Fed will ease in the near term.