As the U.S. monetary policy maker, the Federal Reserve¡¯s ¡°independence¡± has always been an important institutional guarantee. The Federal Reserve¡¯s decisions have a major impact not only on the U.S. economy, but also on the global economy and financial markets.

Since the beginning of this year, Trump has repeatedly asked the Federal Reserve to cooperate with him and take interest rate cuts to stimulate the US economy. To this end, Trump has continuously pressured the Federal Reserve point person, threatening to fire Federal Reserve Chairperson Powell and Board member Lisa Cook one after another. According to reports, at the Jackson Hole meeting held last week, a large number of armed soldiers and police showed up, completely breaking the calm atmosphere of the meeting.

Senior Wall Street journalist Nick Timiraus analyzed on the 24th that Trump is "only two steps away" from fully controlling the Federal Reserve. Since the institution's establishment in 1913, the principle of independence as an "institutional firewall" has never been so fragile and subject to such severe challenges.

Military police with live ammunition appeared

Tensions at Jackson Hole Annual Conference

The Federal Reserve held its annual Jackson Hall Economic Policy Seminar last week, located in Jackson, Tyton County, Wyoming. On August 22, Powell delivered a speech at the conference with market attention.

Since 1978, the Federal Reserve has met at Jackson at the end of August each year, inviting global monetary scholars and policymakers to discuss central bank governance issues. As a resort, Jackson¡¯s scenic landscape, the Fed¡¯s senior officials and visiting guests can walk around the National Park in a quiet and relaxing atmosphere. Since many important figures will speak at this academic policy seminar, the media has also called the meeting the ¡°Annual Meeting of the Federal Reserve¡±.

On August 23, 2025, before the morning meeting of the Jackson Hall Economic Policy Seminar, the U.S. Park Police stationed in the Jackson Lake Hotel hall.

But this year, the previous calm atmosphere has been completely shattered. According to reports, compared with previous years, security measures for this year's conference activities have been significantly strengthened, which has increased the tension at the rally site. Officers from the U.S. Federal Police, National Park Police and the Teton County Sheriff's Office were always present, and some were "wearing military uniforms and carrying guns and weapons." Such a level of security was unimaginable in previous years.

On the morning of the 22nd local time, Trump's fanatical supporter James Fishback rushed into the venue and shouted and confronted Federal Reserve Governor Cook in the hotel lobby. Cook is the first black female board member in the history of the Federal Reserve. She has recently been under strong pressure from Trump. Trump asked Cook to be removed from the board of directors on the grounds of violations of two pledged loans. In the end, due to the fierce conflict, the on-site military police took Fishback away.

Senior reporter:

Trump is two steps away from full control of the Federal Reserve

The seven-member board of governors occupies a crucial place in the Fed's governance structure. Mr. Trump is known to have called for the dismissal of Fed chairperson Jerome Powell, although he would remain a member of the board even if Mr. Powell were removed.

On August 22, 2025, Federal Reserve Chairman Jerome Powell walked in Tyton National Park near Jackson Hall.

Nick Timilaus, a veteran Wall Street journalist, believes that Mr. Trump is two steps away from taking full control of the Fed: ensuring the success of his confidant Stephen Millan, the architect of the Mar-a-Lago plan, and firing Mr. Cook and replacing him.

Members of the Fed's board of governors need to be nominated by the president and confirmed by a vote of the Senate for a 14-year term, and the president has no power to dismiss any member of the board if there are no "major criminal facts."

Among the seven currently in the board, only Bowman and Wallace were nominated by Trump during the first term, and the rest were nominated by the Democratic presidents (Obama or Biden). Bowman and Wallace also acted "loyally" and both voted unusual opposition at the last budget meeting, demanding an immediate interest rate reduction by the Fed. In addition, President Cook resigned this month, and Trump immediately nominated Milan to fill the gap. According to the arrangement, the Senate will vote at the September meeting.

During Trump¡¯s first term, his nominees failed to vote through the Senate due to tax evasion, sexual harassment scandals, lack of experience in monetary policy, etc. If Milan formally became a member of the council, Trump¡¯s squad would have three seats.

¡ø On August 23, 2025 local time, Federal Reserve Governor Lisa Cook arrived at the morning meeting of the Jackson Hole Economic Policy Seminar. Source/vision china

Once this step is completed, Trump only needs to nominate one more person to have a majority in the Federal Reserve Board of Governors. To this end, Trump has been seizing the qualification of Cook's two pledge loans recently, hoping to confirm the fact that he has committed "serious crimes", so that he can replace his own clique after firing Cook.

Mr. Timilaus observes that the market has rewarded the Fed for its policy independence in the past. Investors have bought into the dollar's monetary value because they believe the Fed is making decisions based on economic data rather than political pressure. Once Mr. Trump is in full control and the Fed is fully subservient to political pressure rather than scientific decision-making, the dollar's value base will also be greatly weakened.

In an interview with U.S. media on Monday, the governor of the European Central Bank (ECB) said the central bank¡¯s independence was ¡°decisive¡± and warned that any interference with its independence could have serious consequences.

Red Star News Press Release

Edited by Jan.