"Miran takes on a position at the Federal Reserve; Cook remains in his role"
In a continuation of the power struggle between US President Donald Trump and the Federal Reserve, the President managed to place one of his allies, Stephen Moore, as a temporary member of the influential board of the central bank. However, concerns about Moore's independence and whether he would act independently of Trump's wishes during his term have been raised.
Moore, an advisor to Trump, was confirmed by the US Senate to join the Fed as a temporary member until the end of January 2026. His confirmation comes amidst ongoing criticism from the President, who has been pushing for interest rate cuts to boost the economy.
Meanwhile, the Fed's monetary policy and its independence from political influence are at the core of the issue. Analysts expect the central bank to cut the federal funds rate for the first time since December 2008 due to the US labor market falling short of expectations. This could lower the range of the federal funds rate, which has been in the range of 4.25 to 4.5 percent since December 2008.
The Fed sets interest rates, which greatly influence borrowing costs, and the effects are felt globally, including in Germany and the Eurozone. Low interest rates can boost the economy, but too low rates could further fuel inflation, leading to a more restrictive course advocated by Fed Chair Powell.
The international community, including the International Monetary Fund (IMF), has expressed optimism about a possible rate cut by the Fed. However, this decision is not without controversy. The Fed's next interest rate decision is scheduled to start on Tuesday.
In a separate development, US President Trump attempted to remove Fed Vice-Chair Lisa Cook from her position, citing alleged false statements in mortgage contracts. Cook responded by threatening legal action, arguing that Trump does not have the authority to remove her. A lower court in Washington temporarily blocked Trump's attempt, and an appeals court later rejected Trump's appeal to reinstate the removal of Cook.
Democratic Representative Elizabeth Warren criticized Moore, calling him "Trump's puppet." The ongoing power struggle between Trump and the Federal Reserve continues to dominate headlines as the world watches to see how the situation will unfold.
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