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2d ago

Fed Faces Pivotal Week as Appeals Court Weighs Cook Case and Senate Rushes Miran Vote

Trump’s attempts to remake Fed leadership intensify questions about central bank independence.

The exterior of the Marriner S. Eccles Federal Reserve Board Building is seen in Washington, D.C., U.S., June 14, 2022. REUTERS/Sarah Silbiger/File Photo
Fed Chair Jerome Powell during the Federal Reserve Integrated Review of the Capital Framework for Large Banks Conference on July 22.
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Overview

  • An injunction from U.S. District Judge Jia Cobb currently blocks President Trump from firing Governor Lisa Cook, and a three-judge appeals panel could rule as soon as Sunday on whether she stays pending litigation.
  • Senate Republicans set a Monday floor vote to confirm Stephen Miran to the vacant Fed board seat, and he has said he will take unpaid leave rather than resign his White House post if confirmed.
  • If confirmed and processed in time, Miran could be sworn in for the Sept. 16–17 Federal Open Market Committee meeting, though membership and voting participation remain uncertain.
  • Policymakers are widely expected to deliver a quarter-point rate cut this week, which would be the first reduction since December 2024, reflecting a weaker labor market and inflation still above the 2% goal.
  • Economists and former Fed officials warn that overt political pressure and rapid personnel moves risk eroding the Fed’s credibility, with tariffs cited as a factor keeping inflation elevated.