Will Trump Trigger a Wave of Dismissals? Former Fed Vice Chair Warns: Multiple Regional Fed Presidents May Be Replaced

　　Former Federal Reserve Vice Chair Lael Brainard warned on Tuesday that multiple regional Fed presidents could be ousted next year due to President Trump's politically charged actions.

　　"The President (Trump) is effectively moving to shift the majority on the Board well ahead of the timeline envisioned by the institutional framework and terms. This opens the door to renewal reviews for all regional Fed presidents in February next year and could result in some not being reappointed," Brainard stated in an interview on Tuesday.

　　Brainard served as a Fed governor from 2014 to 2023. She was appointed by Democratic President Obama and also held a position in the Biden administration.

　　Brainard's comments came a day after Trump announced the dismissal of Fed Governor Cook, citing allegations of falsifying mortgage documents.

　　Trump said on Tuesday that he already has a suitable candidate in mind to replace Cook and will soon secure a majority at the Fed, emphasizing that interest rates must decline to address housing costs.

　　The Fed's monetary policy decision-making body is the Federal Open Market Committee (FOMC). The FOMC consists of 12 members, including the seven Federal Reserve Board governors, the president of the New York Fed, and four regional Fed presidents (rotated annually from the 11 regional Fed banks excluding New York).

　　Successfully ousting Cook would give Trump an opportunity to secure a majority on the seven-seat Federal Reserve Board. Currently, among the Fed governors, two are explicitly in favor of rate cuts: Bowman and Waller. Trump recently also nominated White House chief economist Stephen Miran to fill a vacant board seat.

　　According to the Federal Reserve Act, regional Fed presidents serve five-year terms ending in late February of years ending in 1 or 6, with the possibility of multiple reappointments. Renewal requires a vote by the regional Fed's board of directors and approval from the Federal Reserve Board.