Federal Reserve Keeps Independence as 11 FOMC Members Limit Trump’s Grip
Updated
Updated · The Guardian · May 15
Federal Reserve Keeps Independence as 11 FOMC Members Limit Trump’s Grip
5 articles · Updated · The Guardian · May 15
Jerome Powell left the Fed chair this week but stayed on the board, preserving one seat from Trump’s control and reinforcing the central bank’s autonomy for now.
11 other FOMC members still stand between any Trump-picked chair and rate cuts driven by politics, while the Supreme Court has so far carved out a special exception for the Fed even as it weakened protections for other agencies.
Trump’s pressure campaign has included repeated demands for lower rates, threats to indict Powell over the Fed headquarters renovation, and an effort to remove governor Lisa Cook that remains before the courts.
Markets have largely stayed calm because investors still assume the legal system will shield the Fed, but that confidence rests on a narrow and potentially reversible judicial rationale.
The broader risk is that a court willing to expand presidential power could still let Trump erode Fed independence later, leaving a key economic safeguard hanging on an uncertain legal thread.
With a new chair leading the Fed, will its hard-won independence from presidential influence last?
Why does the Supreme Court protect the Fed while allowing more control over other independent agencies?
The Federal Reserve at a Crossroads: Warsh’s 2026 Leadership, Trump’s Pressure, and the Battle for Central Bank Independence
Overview
In mid-2026, Kevin Warsh became the new Federal Reserve Chair, stepping in as the Fed faced strong political pressure from President Trump and the White House, who wanted interest rate cuts. Warsh’s support for rate cuts matched the administration’s wishes, raising concerns about the Fed’s independence. At the same time, the Fed kept interest rates high to fight inflation, with consumer prices rising 3.8% over the past year. Warsh now faces the challenge of balancing political demands for easier money with the need to control inflation, all while leading a divided central bank through a critical leadership transition.