"Trump has never given up on 'controlling' the Federal Reserve."

The Federal Reserve's independence continues to face pressure from the White House.

Wallstreetcn mentions that this week, the U.S. Supreme Court temporarily blocked Trump from dismissing Fed Governor Lisa Cook. However, this decision not only failed to quash the White House's intent to act, but actually gave the Trump camp a new procedural breakthrough, leading to a rapid escalation of their plans to fully infiltrate the Fed.

After the Supreme Court ruled that Cook would temporarily remain in her position due to "procedural defects," Trump said in an interview with CNBC on Thursday that the government will initiate a new round of dismissal proceedings. Trump stated:

We will initiate this process, and it will be complete and perfect in terms of procedure.

According to reports citing informed sources, both Cook and former Fed Chair Powell have been listed as targets; Trump allies are actively exploring new paths to remove them from the Fed.

Meanwhile, the vacancy for President of the Atlanta Fed is seen by the White House as another wedge point. According to reports, U.S. Treasury Secretary Besant is using his network to look for potential candidates.

The Atlanta Fed president will participate in rate votes in 2027, and its close analysis of economic growth is highly valued by Trump’s economic policy team.

Procedural defeat, but persistent action

The U.S. Supreme Court ruled on Monday that President Trump currently has no authority to remove Fed Governor Lisa Cook from her post.

Chief Justice John Roberts expressly noted in his opinion that this ruling applies only to this particular case and does not have general applicability.

Trump did not provide Cook a fair hearing process. The U.S. court did not substantiate whether the accusations against Cook provide sufficient legal grounds for dismissal.

According to reports citing informed sources, allies have treated this ruling as an operational guide and are studying how to advance dismissal actions again while complying with procedures. Even if the next attempt might again go to court, the White House intends to press on.

Last August, Trump tried to remove Cook on grounds of "mortgage fraud"—an unprecedented move in Fed history. Cook denied the allegation and filed a lawsuit to block her removal, which escalated to the Supreme Court.

Powell: Remaining means becoming the target

Analysts believe Powell’s position is similarly precarious.

Multiple sources report that Trump is particularly dissatisfied that Powell, after his term as Fed chair ended, remains at the Fed as a board member.

At the end of May, Powell attended the Kennedy "Profile in Courage" award ceremony and delivered a speech praising Congress for "wisely" separating monetary policy decisions from political pressure, an act that especially annoyed Trump.

Wallstreetcn mentions, U.S. White House National Economic Council Director Hassett stated:

I am concerned about Powell staying on.

Hassett pointed out that some Fed insiders' voting motives are "anti-Trump" rather than made in public interest.

Powell’s term as Governor extends to 2028. He has previously said he would keep a low profile, but also noted that it is precisely the persistent legal pressure from the executive branch that compelled him to stay.

The U.S. Justice Department previously launched a criminal investigation into Powell over cost overruns for a $2.5 billion renovation at the Fed’s Washington headquarters, which Powell characterized as the price for the Fed refusing to set rates as Trump wished.

Although D.C. federal prosecutor Jeanine Pirro said this April the investigation had been dropped, she also noted she would still review the upcoming Inspector General’s report, leaving room for possible renewed investigation.

Reportedly, White House officials and allies are counting on the Inspector General’s report or other avenues to find a breakthrough to push Powell out.

Atlanta Fed: An alternative infiltration route

The battle for regional Fed presidentships is another front in Trump’s strategy to reshape the Fed’s influence.

The Atlanta Fed presidential vacancy stemmed from former president Raphael Bostic’s resignation this February; he repeatedly emphasized tail risks of inflation.

According to sources, in May, the search for this position had entered advanced stages.

However, considering that new chair Walsh is about to be formally nominated, Fed Vice Chair Michelle Bowman and then Governor Stephen Miran advised pausing the selection process.

These two officials, appointed by Trump, believe it is best to wait until Walsh is officially sworn in before proceeding, to ensure he has a say in the final selection.

The selection process has recently restarted. According to two insiders, Walsh is looking for candidates with private sector leadership experience.

According to regulations, regional Fed presidents are appointed by local boards, with the candidates then needing Fed Board approval. Atlanta Fed Board Chair and Selection Committee Chair Greg Haile stated the Fed "is committed to selecting the candidate best able to serve the Sixth District through proper procedure."

Clouds over rate cut prospects, persistent political pressure

The ongoing White House pressure on the Fed comes as prospects for rate cuts this year have been noticeably diminished.

According to the Fed’s June forecast, about half the officials believe rate hikes may be needed this year, and inflation risks have worried several regional Fed presidents.

White House spokesperson Kush Desai did not comment on the specifics in the report, but stated that the Trump administration’s "supply-side policies are cooling inflation and paving the way for rate cuts," and emphasized staff confidence in current chair Walsh.

Walsh publicly supported lowering interest rates during his pre-nomination period, aligning with Trump’s stance.

However, the renewed rise of inflation has cast greater doubt on the effectiveness and intent of the White House’s personnel maneuvers to influence monetary policy.

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