President Trump is reviving his attempt to remove Federal Reserve Governor Lisa Cook, pressing her to respond to allegations of mortgage fraud that Cook has called baseless, potentially sparking a fresh legal battle over Fed independence.
President Trump has repeatedly called Federal Reserve Chairman Kevin Warsh to chat, renewing questions about the independence of the central bank. Trump publicly stated rates should drop but acknowledged it's not entirely Warsh's decision alone.
The Federal Reserve kept its benchmark rate unchanged at 3.50%-3.75% on July 29, but three policymakers voted for a 25-basis-point hike—the first three-member dissent since 2016. Markets had priced in roughly 35% odds of a surprise hike.
The US Supreme Court refused to allow President Trump to immediately fire Federal Reserve Governor Lisa Cook, preserving the central bank's independence. However, the court did grant Trump broader authority to fire heads of most other independent agencies.
Congressional leaders announced a bipartisan agreement on the 21st Century ROAD to Housing Act, which includes provisions barring the Federal Reserve from issuing a central bank digital currency until 2030. The Senate previously voted 89-10 in favor of similar CBDC restrictions.
The Federal Reserve proposed creating a new, more limited form of payment account that would allow firms like fintechs to move money across the Fed's payment rails without enjoying all the privileges of traditional master accounts.
President Trump signed an executive order instructing the Federal Reserve and other regulators to review and modernize banking rules regarding payment system access for crypto and fintech firms within 120 days.
The Federal Reserve maintained interest rates unchanged in what is expected to be Jerome Powell's final FOMC meeting as chairman, with a split 8-4 vote creating uncertainty around future policy. Kevin Warsh cleared Senate Banking Committee approval to become the next Fed chair.
The Department of Justice closed its criminal investigation into Federal Reserve Chair Jerome Powell, passing the matter to the Fed's inspector general. The move clears a potential obstacle for Senate confirmation of crypto-friendly Kevin Warsh as Powell's replacement.
California Representatives Sam Liccardo and Young Kim introduced bipartisan legislation that would grant certain nonbank providers, including crypto firms, access to the Federal Reserve's payment infrastructure.
