Trump’s Shadow War: Inside the High-Stakes Battle for Control of the Federal Reserve

Power plays, backroom deals, and a president who won't take 'no' for an answer—welcome to the Fed's quiet coup.

Subheader: The Art of Monetary Warfare

Trump isn't just tweeting about rate cuts—he's rewriting the rulebook. Sources whisper of unprecedented pressure on Powell, while Treasury quietly stacks the deck with loyalists. The independence of the world's most powerful central bank? Hanging by a thread.

Subheader: Printing Press Politics

When markets zig, Trump zags—straight through institutional norms. The playbook? Attack credibility during dips, claim credit during rallies. Classic strongman economics with a 21st century twist: weaponized monetary policy.

Closing thought: At this rate, the only 'stablecoin' in Washington will be whatever keeps Trump's approval ratings afloat.

Power Shifts in the Federal Reserve

Kugler, a key member of the Federal Reserve, recently announced his resignation ahead of his term’s scheduled end in January. This MOVE has set off discussions about Powell’s future, suggesting he might also face pressure to resign before his term concludes in May. Trump’s influence appears to be growing as he attempts to strategically position individuals aligned with his monetary policy perspectives within the Federal Reserve.

Indeed, TRUMP has already swayed two members of the Fed to oppose current interest rate policies. With Kugler’s exit, the prospect of adding a third ally, possibly one in favor of rate cuts like members Bowman and Waller, becomes likely. However, achieving policy changes would still require the support of seven out of twelve total members, including Powell and regional presidents, amidst the rotational realignment expected in January.

Trump’s Claims and Tactics

Trump has been vocal about alleged economic manipulation by opposing forces, including inaccuracies in labor statistics and an orchestrated economic operation against him. These assertions came alongside Kugler’s resignation announcement, fueling speculations of strategic realignments within the Federal Reserve. As Trump continues to accuse Powell of being ineffective, he leverages these claims to influence public opinion and exert pressure on Federal economic policies.

In response to Kugler’s resignation and the potential for more board shifts, Powell praised Kugler’s contributions and professional acumen. Despite the turmoil, Powell remains steadfast, though his position is increasingly challenging amid the intensified scrutiny and political maneuvers.

Moreover, Pulte, Director of the Federal Housing Finance Agency, hinted at Powell being the next target following Kugler’s departure. Past statements from Pulte indicate a contentious relationship with Powell, adding fuel to the speculation that significant leadership changes could soon occur within the Federal Reserve.

Trump has consistently criticized Powell’s handling of interest rates, citing issues like housing market strain due to elevated costs. If Powell were to leave office, allies like Pulte might celebrate, having long awaited such a shift that could impact fiscal and housing policies.