-- “We’ll have a majority, very shortly so that’ll be great” --
Donald Trump's words just yesterday regarding the Federal Reserve.
He wants the Fed, that should be clear to anyone by now.
❗ And he might well get it, within months! ❗
How? I'll break it down for you 👇
• The Fed's Board of Governors is composed of 7 members
• 2 current members were appointed by Donald Trump during his first term
• 1 new member (Stephen Miran, also a Trump pick), will likely be confirmed soon
• if he succeeds in getting rid of just one more Governor, he can appoint another loyalist, tilting the balance on the Board in his favor with 4 out of 7
That gives Trump-aligned Fed Governors a wide range of possibilities. Not (yet!) full power over interest rates, but over:
• Budgeting
• Staffing
• And CRUCIALLY: Approval of regional Fed presidents.
❗That's a key point in the whole scheme: In addition to the 7 people on the Board of Governors, there are 12 regional Fed presidents. Some of them are always needed for decisions on interest rates.
👉 Here is the kicker:
ALL 12 regional Fed presidents are up for re-appointment in February 2026!!
Ultimately the 7 people on the Board of Governors determine who gets re-appointed - by majority vote!
💥Boom, there you go.
That's why Trump is trying to fire Cook. He wants his people to control the Board of Governors, and by extension control that loyalists get appointed regionally as well. Whoever doesn't align with his vision simply doesn’t get re-appointed.
Like I said yesterday, this is a major topic and markets are only starting to grasp the possibility that the Fed might be losing its independence in a very short time.
I'll leave it at that for now, more to come!
Ingvar
$SPX500$NSDQ100... Show More
If this really happens, markets will have to rewrite the whole script for interest rates and the dollar. The question is – are investors ready for that kind of shock?
... Show More
Trump trying to grab the Fed is pure danger. The Fed must stay independent – if rates turn into politics, markets lose trust fast. It’s not stability, it’s just Trump wanting another toy. I have started diversifying my portfolio towards ex-US for quite a long time now... we have to learn the lessson... Show More
Le banche centrali non devono essere indipendenti dal governo perché non devono essere indipendenti dal popolo che hanno votato quel governo!... Show More Translate
So that's the economy fucked then!
Also it was Trump that nominated Powell in 2017 so him nominating others means little as long as they are strong to their values rather than his.... Show More
1 reply
.
We use our own and third-party cookies on our websites to enhance your experience, analyze traffic, and for security and marketing. For more info, see our Cookie Policy or go to Manage Settings.
Privacy Preference Center
When you visit any website, it may store or retrieve information on your browser, mostly in the form of cookies. This information might be about you, your preferences or your device and is mostly used to make the site work as you expect it to. The information does not usually directly identify you, but it can give you a more personalized web experience. Because we respect your right to privacy, you can choose not to allow some types of cookies. Click on the different category headings to find out more and change our default settings. However, blocking some types of cookies may impact your experience of the site and the services we are able to offer.
More information
Manage Consent Preferences
Strictly Necessary Cookies
Always Active
These cookies are necessary for the website to function and cannot be switched off in our systems. They are usually only set in response to actions made by you which amount to a request for services, such as setting your privacy preferences, logging in or filling in forms. You can set your browser to block or alert you about these cookies, but some parts of the site will not then work. These cookies do not store any personally identifiable information.
Performance Cookies
These cookies allow us to count visits and traffic sources so we can measure and improve the performance of our site. They help us to know which pages are the most and least popular and see how visitors move around the site. All information these cookies collect is aggregated and therefore anonymous. If you do not allow these cookies we will not know when you have visited our site, and will not be able to monitor its performance.
Functional Cookies
These cookies enable the website to provide enhanced functionality and personalisation. They may be set by us or by third party providers whose services we have added to our pages. If you do not allow these cookies then some or all of these services may not function properly.
Targeting Cookies
These cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.
Cookie List
label
ConsentLeg.Interest
label
label
label
Thu Nov 13 2025 23:45:32 GMT+0000 (Coordinated Universal Time)
