Trump's War on the Fed Isn't Over, and Wall Street Is Still Betting on a Rate Hike

President Trump told CNBC he will push again to remove Fed Governor Lisa Cook, criticizing the current Fed board under new Chair Kevin Warsh as “hostile” and potentially aiming to “do the wrong thing.” The rhetoric signals heightened political risk around Fed governance rather than an immediate policy change, with limited immediate market reaction (“barely blinked”).

Analysis

President Trump told CNBC he will push again to remove Fed Governor Lisa Cook, criticizing the current Fed board under new Chair Kevin Warsh as “hostile” and potentially aiming to “do the wrong thing.” The rhetoric signals heightened political risk around Fed governance rather than an immediate policy change, with limited immediate market reaction (“barely blinked”).