The Fed’s First Response to the "Dismissal of a Governor" Incident: Trump Claims "Interest Rate Cut Camp" Will Soon Prevail!

After Trump openly "unilaterally" announced the dismissal of Federal Reserve Governor Lisa Cook, the U.S. president confidently stated on Tuesday local time that he would soon have a "majority" of appointees on the Federal Reserve Board who would support his desire for significant interest rate cuts.

Currently, the Federal Reserve Board has seven members, two of whom have been appointed by Trump. He will also nominate someone to replace Adriana Kugler, who announced her resignation this summer. Trump has chosen one of his key economic advisers, Stephen Miran, to serve the remainder of Kugler’s term, which ends on January 31, 2026.

Trump said on Tuesday afternoon: "We will soon have a majority (of seats), and that will be great. Once we have majority support, the real estate market will fluctuate, and things will be very good. People are paying too high interest rates. That is our only problem. We must lower interest rates a bit."

He also said of Powell: "Because of him and his high interest rates, the housing market is worse than expected. We will solve this problem quickly."

When asked who he was considering to replace Cook, Trump said he had considered some "very good people" for the position. He said, "Well, we have some very good people for this position. I think, perhaps in my own mind, there is someone I like."

He also raised the possibility of "moving Miran to Cook’s seat," as Cook’s term extends until 2038.

"Let’s see what happens. Look, we just placed a very good person in one position. We could move him to a long-term seat and then pick someone else to fill the short-term one. We are very satisfied with the people we have," he added.