"We Will Secure a Majority Soon...
Interest Rates Must Be Lowered"
Following the abrupt dismissal of Federal Reserve Board member Lisa Cook by U.S. President Donald Trump over allegations of mortgage fraud, Trump publicly declared on August 26 (local time) his intention to secure a majority on the Federal Reserve Board. By openly expressing his plan to reshape the Fed according to his own vision-beyond his repeated demands for interest rate cuts-concerns are mounting over the potential erosion of the central bank's independence.
At a Cabinet meeting held at the White House that day, President Trump stated, "We will secure a majority very soon," adding, "It would be good to have a majority. The housing market will turn around, and the situation will become excellent."
He went on to emphasize, "People are burdened by excessively high interest rates, and that is our only problem," stressing, "We need to lower interest rates a bit."
The current Federal Reserve Board consists of seven members: one Chair, two Vice Chairs, and four Governors. All serve as ex officio members of the Federal Open Market Committee (FOMC) and have voting rights on interest rate decisions. Among them, Vice Chair Michelle Bowman and Governor Christopher Waller support President Trump's call for rate cuts. In addition, Trump has nominated his so-called 'economic advisor,' Stephen Miran, Chair of the White House National Economic Council, to replace Adriana Kugler, who recently resigned early. If Trump appoints another rate-cut supporter following Cook's dismissal, four out of the seven Board members would be considered 'pro-Trump.' This composition could significantly influence the other five FOMC members with voting rights who are not on the Board.
Previously, President Trump made public a letter notifying Cook of her dismissal over mortgage fraud allegations on his self-created social networking service, Truth Social. Cook is suspected of having listed a Georgia property as 'residential' to obtain favorable loan terms, then converting it to a rental property. In response, Cook has refused to accept the dismissal and announced plans to file a lawsuit.
In the financial markets, there is a widespread view that President Trump is openly seeking to reorganize the Fed to push through the interest rate cuts he has demanded. As a result, concerns are growing that the independence of the central bank's monetary policy could be undermined.
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