Key facts
- President Donald Trump is again seeking to remove Federal Reserve Governor Lisa Cook, alleging mortgage fraud.
- Trump demanded Cook appear at a White House hearing next month.
- The Federal Reserve raised its target interest rate by 25 basis points to 3.75%-4.00% on September 16, 2026.
- Fed Chair Kevin Warsh defended the rate hike, citing elevated inflation.
- Trump has repeatedly called for lower interest rates, arguing they put the U.S. at a disadvantage.
- The Supreme Court had previously blocked Trump's attempt to remove Cook over due process concerns.
President Donald Trump is intensifying his efforts to exert control over the Federal Reserve, most recently by threatening to remove Governor Lisa Cook and by publicly criticizing the central bank's decision to raise interest rates.
Trump has alleged that Cook's statements about home loans constitute mortgage fraud and has demanded she appear at a White House hearing next month to defend herself. This marks a renewed attempt to remove Cook, following a previous blockage by the Supreme Court due to due process concerns.
Simultaneously, Fed Chair Kevin Warsh defended the Federal Open Market Committee's unanimous decision on September 16, 2026, to raise the federal funds target rate by 25 basis points to a range of 3.75% to 4.00%. Warsh stated that inflation remains elevated and the rate hike is necessary to support a timely return to the Fed's 2% inflation goal. Most officials indicated a second rate hike is likely this year.
Trump has been a vocal critic of the Fed's interest rate policy, arguing that higher rates put the U.S. at an unfair disadvantage and hinder economic growth, particularly in areas like artificial intelligence infrastructure build-out. He has previously suggested he has the unilateral power to influence rates and has publicly expressed dissatisfaction with Fed leadership, though he has stated confidence in Warsh while criticizing the broader board.