Posted on Sep 15, 2025 / USA

The U.S. Federal Reserve enters a critical week amid mounting political and legal pressure that could reshape its leadership and independence. President Trump has attempted to fire Fed Governor Lisa Cook over alleged past mortgage fraud—an effort temporarily blocked by a federal judge yet now under appeal. At the same time, his nominee Stephen Miran, a known critic of the Fed, is pushing through Senate confirmation to fill another open board seat. These developments come with the Fed’s upcoming policy meeting on September 16-17, where a widely expected 0.25% interest rate cut is likely. Stakeholders warn the moves could erode trust in the Fed’s neutrality just when markets are already uneasy over inflation and labor market deceleration. How the courts rule and who is seated on the board may influence not only the rate decision but also broader perceptions of central bank governance.
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