Over the next two days, all eyes will be on the Federal Reserve as governors kick off their policy meeting. The big question is whether the board will cut interest rates.
It’s a task President Donald Trump has been pressuring them to do for months.
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Also notable as the meeting begins is Gov. Lisa Cook’s attendance. It comes after a federal judge halted the Trump administration’s effort to remove her from the Fed Board of Governors.
Cook’s legal battle
Back in August, Trump announced he was firing Cook over alleged mortgage fraud. He claimed she had made false statements on one or more mortgage agreements.
However, following the accusation, Cook sued Trump, saying he illegally tried to remove her from her post.
In a 2-1 decision, a federal appeals court said Cook wasn’t provided with basic due process, including notice of the charges and an opportunity to respond. Judge Jia Cobb said her removal also violated the Federal Reserve Act, which only allows members to be fired for cause.
The ruling, therefore, allows Cook to remain in her post and vote in the upcoming policy meeting. However, the legal battle is likely not over, as the Trump administration is expected to appeal the ruling.
On Monday, the property tax authority in Ann Arbor, Michigan, said it has no reason to believe Cook violated property tax rules.
In response to a request from Reuters, City Assessor Jerry Markey said Cook sought permission to rent out her Michigan home, which she listed as her primary residence. He said living elsewhere, however, does not disqualify her from a tax exemption in Ann Arbor.
The findings from the tax authority could help Cook defend her case should the Trump administration file an appeal.
Policy meeting expectations
The upcoming policy meeting, which Cook will take part in, is expected to draw a lot of attention. Leading up to the two-day meeting, Trump has repeatedly criticized the central bank for not lowering interest rates.
He has called out Fed Chair Jerome Powell as “too late.” He shared a post on Truth Social on Monday saying Powell must cut interest rates “NOW.”
The Fed’s policy-setting committee is expected to announce rate cuts on Wednesday following the two-day meeting.
Stephen Miran joins board
Stephen Miran could be a part of policy discussions after the Senate confirmed him to the Fed’s Board by a slim 48-47 vote.
Miran is one of Trump’s closest economic advisers and now joins the Fed as one of 12 voting members. This is the first time in the Fed’s 111-year history that a board member is also technically an employee of the president.
Critics called it a power grab, arguing Trump is attempting to exert control over what has long been an independent body.
Miran’s attendance at the policy meetings is dependent on when he’s sworn in.
