September\u2019s quarter-point rate cut from the US Federal Reserve\u2019s Federal Open Market Committee (FOMC) plays out against a background of unprecedented political challenge.<\/p>\n
The previously staunchly independent committee already has three key Trump appointees on its governing board out of a total seven (note only one, Stephen Miran, voted for a half point cut at the latest meeting).<\/p>\n
If Chairman Jerome Powell and Michael Barr choose not to stand for their full terms, and the President is ultimately successful in getting Lisa Cook dismissed, then the White House could have a clear majority of Fed Governors at some point in 2026.<\/p>\n
If this plays out what does a Trump influenced Federal Reserve look like? Scott Bessent, the US Treasury Secretary, summarised his thinking in a recent article, saying that the Fed suffers from \u201coveruse of non-standard policies, mission creep and institutional bloat\u201d which \u201care threatening the central bank\u2019s monetary independence.\u201d<\/p>\n
Guy Monson and Subitha Subramaniam assess the fragility of the Fed today, speculate what a White House-influenced central bank would look like, and examine the implications for your portfolio<\/p>\n
Watch the video below.<\/p>\n