Trump Eyes Fed Board Control With Cook Ouster

US president calls for Fed governor's resignation following allegations of mortgage fraud

- Bloomberg

President Donald Trump's campaign to oust Federal Reserve Governor Lisa Cook, if successful, would give him the opportunity to exert more influence over the US central bank by securing a majority on its seven-member board of governors.

Trump has made it clear he wants the Fed to slash borrowing costs, and the central bank—under the leadership of Jerome Powell—has this year been subjected to a steady barrage of attacks from the White House over everything from its monetary policy decisions to cost overruns in a major building renovation project.

The president on Wednesday called for Cook's resignation after Federal Housing Finance Agency Director Bill Pulte alleged she committed mortgage fraud by lying on loan applications to secure more favorable terms. Cook, whose term extends until 2038, later responded, saying she wouldn't be bullied into stepping down.

"This is a new attempt of the administration to gain more control over the Fed," said Claudia Sahm, chief economist at New Century Advisors and a former Fed economist. "They're pulling as many different levers as they can find to get that control."