Timeline: Powell Signals Rate Cut, Trump Seeks Fed Control

September 4th: Following Powell's interest rate cut signal on August 22nd, Trump aimed to exert control over the Fed with the following chronological sequence: Powell's Attitude Shift: On August 22nd, at the Jackson Hole Symposium, Powell released a "rate cut signal" by citing a "shift in the risk balance", which led to the probability of a rate cut in September rising from 75% to approximately 90%. Fed Governor Cunliffe Dismissed: On August 22nd, the same day as Powell's speech, Trump once again issued a threat to fire Fed Governor Cunliffe. On August 26th, Trump dismissed Fed Governor Cunliffe with immediate effect. A few hours later, Cunliffe responded, stating that there was no reason for his dismissal and he would not resign. On August 27th, a Fed spokesperson stated that Cunliffe still remained a Fed governor and could participate in the rate decision until a ruling was made. On August 28th, Cunliffe sued Trump over his dismissal from the Fed board. On August 30th, a judge did not rule on the case and requested both parties to submit further court documents. Trump Seeks to Control the Fed: On August 27th, Trump said that he would soon obtain a majority stake at the Fed and might transfer Milan to another Fed position with a longer tenure. Milan was previously an "interim" governor. On August 27th, according to foreign media reports, the Trump administration intensified its examination of the selection process for regional Fed presidents, expanding its influence over the regional Feds that affect the central bank. Pending Items This Week: The U.S. Senate Banking Committee will hold a confirmation hearing for Trump's nominated Fed governor candidate Milan on Thursday morning local time. The Director of the U.S. Federal Housing Finance Agency will provide the latest information on Fed Governor Cunliffe's mortgage fraud case at 10 p.m. Beijing time on Thursday night. (FXStreet)