While it is still uncertain whether President Donald Trump's dismissal of Federal Reserve Governor Lisa Cook, who is preparing a legal challenge, will succeed, her potential departure gives him another chance to install a nominee more attuned to his monetary priorities.
The Federal Reserve Board of Governors, commonly known as the Fed board, is composed of seven members, or governors, who are nominated by the president and confirmed by the Senate.
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If Trump replaces Cook, he would have named the majority of the Fed's governors, strengthening his influence over the panel that guides U.S. monetary policy.
Former President Joe Biden appointed Philip Jefferson, Michael Barr and Cook to the Fed board in 2022. Trump's picks include Michelle Bowman in 2018, Christopher Waller in 2020 and Stephen Miran in 2025.
Former President Barack Obama nominated Jerome Powell to the Fed board in 2012, Trump nominated Powell to his current role as Chairman of the Federal Reserve in 2017, and Biden reappointed Powell in 2022.
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When asked about replacing Cook, Trump told reporters at the White House on Tuesday that he has some "very good people for that position."
"We’ll have a majority very shortly," Trump said. "So that’ll be great."
Tensions between Trump and the Federal Reserve over monetary policy have intensified in recent months. Trump has placed the blame squarely on Chairman Jerome Powell for not lowering the federal funds target rate, which he says could save the nation "hundreds of billions of dollars."
Meanwhile, Powell has kept the central bank’s key borrowing rate target within a range of 4.25% to 4.5%, maintaining a measured, wait-and-see approach as officials gauge the economic effects of Trump’s tariffs.
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Cook's ascension marked a historic first, as she became the first Black woman to serve as a governor on the Fed board. Now, her potential removal from that same role could mark another historic first.
As it stands, Trump says Cook is fired, effective immediately. But Cook and her lawyer, Abbe Lowell, argue that Trump has no legal authority to remove her. Her term on the Fed board runs until January 2038.
The Federal Reserve acknowledged Cook's potential legal action and said in a Tuesday statement that the U.S. central bank will "abide by any court decision."
"Lisa Cook has indicated through her personal attorney that she will promptly challenge this action in court and seek a judicial decision that would confirm her ability to continue to fulfill her responsibilities as a Senate-confirmed member of the Board of Governors of the Federal Reserve System," a Federal Reserve spokesperson wrote in a statement to Fox News Digital.
