Donald Trump has increased his efforts to influence the U.S. Federal Reserve, recently visiting its headquarters in Washington, D.C. However, a significant focal point in this endeavor is a condominium located above the Four Seasons hotel in Atlanta, Georgia. Allegations involving this property are at the forefront of a dispute regarding the Fed’s independence and future governance.
Historically, U.S. presidents have respected the autonomy of the Fed, permitting it to make long-term economic decisions even amidst short-term political pressure. Trump’s approach marks a departure from this tradition. Since his return to office in January, he has publicly criticized the Fed and its chair, Jerome Powell, using derogatory language to describe his performance and accusing the bank of harming the economy by not lowering interest rates. Despite Trump’s criticisms, Fed policymakers have maintained their positions, awaiting the impacts of various policies on the economy before making any changes.
The controversy surrounding the Atlanta condominium involves Lisa Cook, an economist appointed to the Fed’s board by President Biden. It is alleged that she took out two mortgages listing different primary residences within weeks of each other, claims that have not been substantiated. Trump has called for her resignation, and when Cook refused, he attempted to remove her, asserting that he possesses the authority to do so—a claim she contests. Her term lasts until 2038, and her future now appears likely to be determined in court.
While the current Fed leadership has resisted Trump’s demands, he has already made efforts to reshape the board by nominating his allies and aiming for a majority in the influential Federal Open Market Committee. With Powell’s term as chair ending in May, further changes could enhance Trump’s control over the Fed’s policy direction, raising questions about the future independence of the central bank.
Source: https://www.theguardian.com/business/2025/aug/26/trump-federal-reserve-powell-cook