00:00The Fed chair, Trump handpicked, just raised interest rates despite a year of Trump demanding the opposite.
00:06Here's what's happening.
00:07Trump picked Kevin Warsh as Fed chair, betting on rate cuts, but the Fed doesn't move on the chair's say
00:12-so.
00:13It's a committee of 12.
00:15On Wednesday, they voted unanimously to hike for the first time in three years to a range of 3.75
00:20to 4%.
00:21This wasn't a revolt.
00:23Three members already voted to hike in July and lost 9-3.
00:27But then the last inflation report showed prices still stuck above the Fed's target, so the rest agreed.
00:33Trump even told Warsh to just vote with the board since he didn't have enough votes to stop it.
00:37So a president can't steer the Fed through the chair.
00:40Governors serve fixed terms removable only for cause, which leaves one lever left for the president, who sits on the
00:47board.
00:48Trump tried to fire Governor Lisa Cook last year over mortgage fraud allegations that she denies and was never charged
00:55with.
00:55In June, the Supreme Court ruled 5-4 that she stays and that a president must give notice and a
01:00chance to respond first.
01:02Along with the ruling, Justice Roberts noted Trump could try again with that process, so in August, the White House
01:08did exactly that, telling Cook it was considering her removal.
01:11And she isn't the only pressure point.
01:13The DOJ opened a case against Powell, closed it, and says they can reopen it.
01:17The real tension here isn't just one rate decision, but how far a president can bend the Fed.
01:23So, how independent do you think the Fed should be from the president?
01:25And does that answer change with who's in office?
01:28Drop your take in the comments and follow us here for more.
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