September Federal Reserve Board Composition Forecast: Trump Camp May Have a Four to Three Edge

August 31st. Apart from Tim Cook who is currently engaged in a court battle with Trump, the Federal Reserve Board of Governors (with a full membership of 7) also comprises Powell and two governors appointed by Biden (Jefferson and Barr), and they, like Cook, are in alignment with Powell. In addition, there are two governors appointed by Trump during his first term (Waller and Bowman), and both of them voted in favor of rate cuts in July. Trump has nominated his advisor Stephen Moore to fill the vacancy caused by Cugler's resignation. The Senate Banking Committee will hold a confirmation hearing for Moore next Thursday. If approved promptly, he may join the Fed in time for the September meeting, indicating that Trump will have at least three supporters on the Federal Reserve Board. Furthermore, if the court rules that Trump can dismiss Cook, he will promptly nominate her successor, potentially enabling him to obtain a majority (four out of seven) on the board. This ruling is unlikely to be issued before the September meeting, but Cook's absence may lead to a tie among the three Trump-appointed governors, the two Biden-appointed governors, and Powell. (FXStreet)