Trump administration weighs tighter grip over Fed’s regional banks

The administration of US President Donald Trump is reportedly considering options to expand influence over the twelve regional banks of the Federal Reserve, Bloomberg reported, citing well-informed sources.

The administration is now reviewing the process of selecting and reappointing regional bank presidents — a responsibility currently shared between private-sector bank boards and the Board of Governors — in what would mark an unprecedented step by Trump’s administration to steer the course of US monetary policy, the sources indicated.

The board of governors is scheduled to approve the list of current regional bank presidents next February, as part of a procedure that occurs once every five years. However, Trump’s recent dismissal of Lisa Cook has raised concerns among many regional presidents about the security of their positions.

According to the sources, Cook’s dismissal prompted some regional presidents to confer with each other regarding the potential impact on their roles. The sources added that the White House’s aim is not solely to push the Fed toward rate cuts, but also to oversee the process of selecting regional bank presidents.

Five of these presidents hold rotating seats on the Federal Open Market Committee (FOMC), including the President of the New York Fed and four presidents from the other 11 regional banks on an annual basis.