The Federal Reserve: Background & News
Jump down to recent Fed developments, below.
Monetary Policy v. Fiscal Policy
Fiscal policy: The government’s tax, spending, and debt policies, which influence the national economy.
Monetary policy: The strategy of influencing changes in the money supply and interest rates to affect output, employment, and inflation.
The Fed
Federal Reserve System: The Federal Reserve is responsible for conducting the nation’s monetary policy and overseeing credit conditions.
Federal Open Market Committee is the group within the Federal Reserve System that determines monetary policy. The open-market desk at the Federal Reserve Bank of New York implements that policy with open-market operations (the purchase or sale of government securities), which influence short-term interest rates–especially the federal funds rate–and the growth of the money supply. The committee is composed of 12 members, including the seven members of the Board of Governors of the Federal Reserve System, the president of the Federal Reserve Bank of New York, and a rotating group of four of the other 11 presidents of the regional Federal Reserve Banks.
Recent Developments
Wed, April 15, 2026:
Tues, April 14, 2026:
Trump’s Fed Pick Discloses Vast Wealth Ahead of Confirmation Hearing
US prosecutors made a surprise visit to the Federal Reserve’s offices in Washington amid the Justice Department’s investigation into Chair Jerome Powell and a renovation project. The visit was denied entry to the construction site due to safety and clearance protocols, and the Fed’s outside counsel objected to the visit, requesting that further interaction be limited to existing channels. The surprise visit may further delay Kevin Warsh’s nomination in Congress, with Senator Thom Tillis stating he won’t support Warsh’s confirmation until the DOJ probe is resolved. - Bloomberg
Fri, April 10, 2026:
Thurs, April 9, 2026:
Sun, March 29, 2026:
Tues, March 24, 2026:
Sat, March 21, 2026:
Wed, March 18, 2026:
Fed Holds Rates Steady as War in Iran Upends the Economic Outlook - NYT
Powell Says He Will Remain as Fed Chair Until Successor Is Confirmed - NYT
Fed issues statement leaving interest rates unchanged. - FOMC
Wed, March 11, 2026:
Tillis says DOJ probe of Powell ‘reaching the point of the absurd.’ The North Carolina Republican said Fed chair nominee Kevin Warsh “possesses impeccable credentials and a clear vision for maintaining the Fed’s independence.” - Politico
Thurs, Feb 26, 2026:
Fed seeks to block Justice Dept. subpoenas in Powell probe. Federal Reserve Chair Jerome Powell has called the probe a baseless attack by the Trump administration on the central bank’s independence. - WP
Mon, Feb 16, 2026:
Trump wants the Fed to cut rates. Kevin Warsh has bigger plans. Any turbulence that pushes up longer-term rates would clash with the president’s goal of cutting borrowing costs for the government and lowering mortgage rates. - Politico
Thurs, Feb 12, 2026:
Tillis open to compromise that would advance Trump’s Fed chair nominee - AP
Sun, Feb 1, 2026:
At the Alfalfa Club’s closed-door dinner, Trump took the stage and joked about filing a lawsuit against Kevin Warsh, his new Fed chair nominee, if Warsh doesn’t lower interest rates when he gets to the central bank, WSJ’s Josh Dawsey and colleagues scooped. - Politico
TrillionsWeekly: Although cloaked in humor, Trump’s marching orders to Warsh are quite clear—lower interest rates to juice the economy ahead of the midterm elections regardless of the upward pressure on prices. The result: tariff taxes are already pushing up producer and consumer prices; lowering interest rates could send prices even higher.
Fri, Jan 30, 2026:
Trump Picks a Reinvented Warsh to Lead the Federal Reserve - Bloomberg
Kevin Warsh is Trump’s Pick for Fed Chair - NYT
Who is Fed chair nominee Kevin Warsh? - AP
Meet the Federal Debt, the Fed’s Actual New Boss - NYT op-ed
Trump’s choice of Warsh will shift from Powell’s data-dependent approach to policy - FT
Republicans love Kevin Warsh. But he still has a problem in the Senate. GOP Sen. Thom Tillis is vowing to block any central bank nominees until an investigation into Fed Chair Jerome Powell is “resolved.” - Politico
Trump nominates Kevin Warsh as next Fed chair - Reuters
The nomination must be confirmed by the Senate. Powell’s term as Fed chair ends in May.
Wed, Jan 28, 2026:
The Federal Reserve left interest rates unchanged, despite relentless attacks from President Trump, who wants borrowing costs to be much lower. - NYT
Tues, Jan 27, 2026:
Fed, Signaling Little Urgency, Prepares to Pause on Rate Cuts. The Federal Reserve is expected to hold interest rates steady on Wednesday, despite relentless attacks from President Trump over borrowing costs. - NYT
Trump Has Four Finalists to Run the Fed. None of Them Are Exactly What He Wants. The president wants someone who will pursue lower interest rates—and who’s credible enough to actually deliver them. - WSJ
Fri, Jan 23, 2026:
In the case of the Federal Reserve, Supreme Court appears to carve out a murky exception - AP
Thurs, Jan 22, 2026:
US Supreme Court sees risk in Trump running roughshod over Fed - Reuters
Wed, Jan 21, 2026:
Supreme Court seems inclined to keep Lisa Cook on Fed board despite Trump’s firing - AP
Five takeaways from the Lisa Cook oral arguments - WSJ
Mon, Jan 19, 2026:
Cook case could lead to ‘cause’ protections for Fed, or a roadmap for dismissals - Reuters
Sat, Jan 17, 2026:
Fed Turmoil Is Threatening Dollar Supremacy Just as China Pushes the Yuan. Economists see a politicized central bank damaging confidence in the U.S. system while Beijing advances in globalizing yuan - WSJ
Fri, Jan 16, 2026:
The Trump administration’s move to serve the Fed with grand jury subpoenas has led to speculation that Jerome Powell will stay on the Board of Governors after his term as chair ends, creating a potential “rival center of influence” inside the Fed. If Powell stays on, it could upend Trump’s plans to stack the board with officials who support his calls for steep interest-rate cuts and create a counterweight to the next Fed chair. - Bloomberg
Trump’s Fed lawfare backfired quickly. Markets price in higher rates as the president suggests he won’t nominate Kevin Hassett for chair. - WP
‘DEAD’: Hassett’s Fed chair bid thrown into doubt. “I actually want to keep you where you are if you want to know the truth,” the president told his top economic adviser, Kevin Hassett, on Friday. - Politico
The Federal Reserve is in for an unusual amount of upheaval as the Trump administration continues its efforts to reshape the central bank and exert more sway over policy. Appointing the next chair is just one piece in the mosaic. - Bloomberg
On the verge of naming a successor to Jerome Powell, the administration took one more shot at the incumbent—and triggered a Washington backlash that could yet derail the campaign to tighten White House control over the central bank.
That stoked expectations that Powell will stay on the Board of Governors after his term as chair ends in May—setting up the optics of a rival center of influence inside the world’s most powerful central bank.
National Economic Council Director Kevin Hassett, a front-runner to become the next chair, says he’s up to the job. Meanwhile, several policymakers have signaled a willingness to pause rate cuts at the January meeting.
Another major dilemma for the Fed, or rather “trilemma”: how big should its balance sheet be after it stopped shrinking its $6.5 trillion portfolio?
Wed, Jan 14, 2026:
The Fed chair race is becoming a proxy war for central bank independence. The investigation into Fed chief Jerome Powell could have a lasting impact on President Donald Trump’s ability to shape the central bank. - Politico
Tues, Jan 13, 2026:
Global central bankers delivered a show of solidarity for the Federal Reserve chair — more backlash against Trump administration pressure. - Bloomberg
Blowback Builds Over Criminal Investigation of Powell - NYT
The Fed strikes back. Powell issued unusually pointed criticism of the president, who has made a habit of attacking him since his first term in the White House. Today, Wall Street titans weighed in on Powell’s behalf, alongside the heads of 10 major central banks around the world who expressed solidarity with the Fed chair in a joint statement. - Politico
Mon, Jan 12, 2026
Trump’s list of targeted opponents grows longer with action against Powell and the Federal Reserve - AP
Fed Changes Course and Takes On Trump’s Political Fight. The Justice Department’s decision to open up a criminal investigation of Jerome H. Powell, the chair of the Federal Reserve, is a major escalation in the pressure campaign against the central bank to cut interest rates. - NYT
Greenspan, Bernanke, Yellen and other past officials say Trump using ‘prosecutorial attacks’ to undermine Fed - CNBC
‘Freaked out’ about the bond market: White House reels from Powell probe. The Justice Department’s investigation into Federal Reserve Chair Jerome Powell has the White House in damage-control mode. - Politico
Banana Republicanism. A criminal investigation of Federal Reserve Chair Jerome Powell will test whether Republican loyalty to the president has any limits. - The Atlantic
Why the Federal Reserve has historically been independent of the White House-AP
Tues, Jan 6, 2026:
Fed’s Miran Says More Than Full Point of Cuts Needed in 2026 - Bloomberg
The Fed’s Six Big Challenges in 2026 - Bloomberg / Op-Ed
Tues, Dec 30, 2025:
Deep Divide Inside Fed Raises Questions About Timing of Further Rate Cuts. Officials at the central bank have splintered over whether rising unemployment or elevated inflation poses the bigger economic risk. - NYT
Thurs, Dec 18, 2025:
As President Trump’s beauty pageant to select a new Federal Reserve chief grinds on, spare a thought for the booby prize Jerome Powell has left for his successor. Last week’s Federal Open Market Committee meeting dragged the central bank back into quantitative easing. – WSJ
Quantitative easing is back. Let’s hope it works for all Americans this time. The Fed’s rate cut wasn’t the surprising part of its moves this month. – WP
The reason is that multiple deflationary forces loom: Artificial intelligence and robotics are automating away inefficiencies. Tariffs are reshaping trade. And a surge in deportations is tightening labor markets. Each would be worth watching on its own, but collectively they create perfect conditions for the Fed to fail at monetary policy.
Wed, Dec 17, 2025:
Next Fed Chair in ‘No-Win Scenario’ as Selection Process Draws to a Close. The person picked to replace Jerome H. Powell will be thrust into a credibility problem that will be difficult to escape. – NYT
Tues, Dec 16, 2025:
Trump officials privately raise doubts about Hassett for Fed chair. Hassett’s critics say he has not been effective as head of the National Economic Council, playing little part in driving policies. – Politico
Mon, Dec 15, 2025:
Hassett’s Fed chair candidacy received pushback from high-level people close to Trump – CNBC
Fri, Dec 12, 2025:
Trump Says He Is Leaning Toward Warsh or Hassett to Lead the Fed. In an interview with The Wall Street Journal, Trump said the next Fed chair should consult with him on interest rates. – WSJ
During a 45-minute meeting with Warsh on Wednesday at the White House, the president pressed Warsh on whether he could trust him to support interest-rate cuts if he were chosen to lead the central bank, according to people familiar with the meeting. Trump, in the Journal interview, confirmed that reporting.
Fed Officials Split Over Risks to US Economy Going Into 2026 – Bloomberg
Fed Board Votes Unanimously to Reappoint Reserve Bank Presidents. The administrative move had drawn unusual attention amid President Trump’s pressure campaign on the central bank – WSJ
Thurs, Dec 11, 2025:
The bar is now significantly higher for the Fed to carry out further reductions, with policymakers facing a tricky task in balancing inflation and hiring momentum. – Bloomberg
Wed, Dec 10, 2025:
Federal Reserve cuts key rate, sees healthier economy next year – AP
A Divided Fed Cuts Rates Again—but Why? The central bank predicts faster economic growth in 2026 but still eases again. – WSJ
Fri, Dec 5, 2025:
Even If Fed Cuts Rates Again, US Economy May Not Get Much of a Boost – Bloomberg
Thurs, Dec 4, 2025:
Bond investors warned US Treasury over picking Kevin Hassett as Fed chair – FT
Tues, Nov 25, 2025:
Hassett Emerges as Frontrunner in Trump Fed Chair Audition – Bloomberg
Mon, Nov 24, 2025:
Fed Chair Powell’s Allies Provide Opening for December Rate Cut. A divided committee, missing data and a whiff of stagflation leave Powell to choose between two paths—each with drawbacks. – WSJ
Thurs, Nov 20, 2025:
House Financial Services Chair French Hill is blocking a bipartisan Senate… proposal to include in the National Defense Authorization Act… a provision that would temporarily ban a central bank digital currency. – Politico
Wed, Nov 19, 2025:
Bond Market Wagers on Fed Rate Cut Crumble on Jobs Data Void – Bloomberg
Thurs, Nov 13, 2025:
Equities tumble, bond prices dip as hopes fade for Fed rate cut in December – Reuters
Wed, Nov 12, 2025:
Fed Is Increasingly Torn Over a December Rate Cut – WSJ
Wed, Oct 29, 2025:
Fed Cuts Rates by Another Quarter Point, but Future Cuts Are ‘Far From’ Certain. Powell injects new doubt by highlighting a ‘growing chorus’ of officials who are wary about further reductions – WSJ
Federal Reserve cuts key rate as government shutdown clouds economic outlook – AP
The Federal Reserve cut interest rates by a quarter of a percentage point on Wednesday for its second consecutive meeting, seeking to steady a weakening labor market as a month-long government shutdown has clouded its view of the economy. – WP
Fed’s Powell says don’t count on a December rate cut. Powell added that tariffs are fueling inflation – Reuters
Tues, Oct 28, 2025:
How the Shutdown Has Cut Off Key Data Guiding the Fed – Bloomberg
The Fed’s $6.6 Trillion Test: When to End Its Portfolio Runoff. Three-year bid to shrink its asset portfolio comes up against signs of funding pressures in overnight lending markets – WSJ
The Fed’s $6 Trillion Balance Sheet Is About Right – Bloomberg
Mon, Oct 27, 2025:
Federal Reserve meets Wednesday for interest rate decision. Here’s what economists predict. – CBS
Tues, Oct 14, 2025:
Powell Signals Fed Is on Track to Keep Cutting Rates; still sees labor market risks outweighing those posed by higher inflation tied to President Trump’s tariffs. – NYT
Fri, Oct 10, 2025:
Trump’s Fed chair candidates list narrowed down to five by Bessent after interviews – CNBC
Wed, Oct 8, 2025:
Scott Bessent grilled Fed chair candidates on rates and quantitative easing. Trump administration ends first round of interviews to find replacement for Jay Powell – FT
Wed, Oct 1, 2025:
The Supreme Court on Wednesday allowed Lisa Cook to remain as a Federal Reserve governor for now, declining to act on the Trump administration’s effort to immediately remove her from the central bank. – AP
Thurs, Sept 25, 2025:
Greenspan, Bernanke Yellen urge Supreme Court to let Lisa Cook keep her job as a Fed governor – AP
Tues, Sept 23, 2025:
Powell signals Federal Reserve to move slowly on interest rate cuts – AP
Wed, Sept 17, 2025:
Fed announces first rate cut in nine months, signals more reductions to come. Central bankers opted for a quarter-point cut this time around. – CNN
Tues, Sept 16, 2025:
A court blocked a last-minute attempt on Monday to remove Lisa Cook from the Fed board ahead of a meeting to set interest rates. – NYT
US Short-Term Rate Jumps to Year High as Funding Strains Grow – Bloomberg
Sun, Sept 14, 2025:
Trump Administration Claims Vast Powers as It Races to Fire Fed Governor Before Meeting. Trump has forged ahead with his attempts to fire Lisa Cook even as new documents call his claims of mortgage fraud into question. – NYT
Fri, Sept 12, 2025:
The economy looks weaker. The Federal Reserve looks weaker, too. With jobs down and inflation up, the Federal Reserve weighs rate cuts and attacks on its independence. WP
Thurs, Sept 11, 2025:
Trump Asks Court to Let Him Fire Cook – Bloomberg
Wed, Sept 10, 2025:
The Trump Administration appealed Tuesday’s District Court ruling that Federal Reserve Governor Lisa Cook cannot be removed while her lawsuit is pending. – CNN
Stephen Miran, Trump’s Fed pick to fill vacant seat, could get Senate confirmation Monday. That would allow him to participate in a rate-setting meeting that starts Tuesday. – Politico
Will the Fed’s Independence Survive the Supreme Court? Chief Justice Roberts’ ruling in an FTC case leaves the Federal Reserve as the sole independent agency whose members the president can’t fire. – Bloomberg
Tues, Sept 9, 2025:
Pressure mounts for Fed rate cuts after massive employment revision. New numbers released by the Labor Department could boost Trump’s argument for lower borrowing costs. – Politico
On Tuesday, Federal Judge Jia M. Cobb of the U.S. District Court for the District of Columbia ruled that Trump cannot remove Federal Reserve Governor Lisa Cook while her lawsuit seeking to prevent her firing is still in progress. In the ruling, Cobb said that although the conflict is still in its preliminary stages, “Cook has made a strong showing that her purported removal was done in violation of the Federal Reserve Act’s ‘for cause’ provision.” Cobb noted that “for cause… does not contemplate removing an individual purely for conduct that occurred before they began in office,” suggesting that the allegations regarding Cook’s mortgage declarations of principal residence might not be relevant to her Fed service.
Fri, Sept 5, 2025:
Weak Jobs Report Strengthens Case for Rate Cuts. A reduction at the Federal Reserve’s next meeting this month looks all but assured after August’s labor market data. – NYT
Thurs, Sept 4, 2025:
Trump Is Making Strides in His Takeover of the Fed. White House official Miran would consider keeping his job while serving on Fed board in unprecedented arrangement – WSJ
Trump adviser Miran will take unpaid leave from White House if confirmed to Fed. His comment drew criticism from Senate Banking Democrats, who suggested it would compromise his independence from the White House. – Politico
Tues, Aug 26, 2025:
‘Uncharted Waters’: Trump’s Attempt to Take Charge of the Fed. The president’s intention to fire Fed governor Lisa Cook could give him sway over the central bank’s rate-setting power. – WSJ
Donald Trump’s attack on Fed shifts market bets on interest rates and inflation. Gap between long-term and short-term borrowing costs reaches its widest in three years. – FT
Mon, Aug 25, 2025:
President Trump announced via social media that he is removing Lisa Cook from the Federal Reserve Board of Governors, based on unproven allegations of improperly designating her primary residence on mortgage applications. – AP
Cook has refused to resign and filed suit in federal court arguing the attempted removal lacked “cause” and is a pretext for undermining the independence of the Fed. While litigation proceeds, Cook remains an active governor.
Fri, Aug 22, 2025:
Powell Highlights Job Market Worries, Opening Path to Rate Cut. Fed chair sees ‘challenging situation’ as tariffs drive up costs and labor market appears to soften. – WSJ
Thurs, Aug 14, 2025:
Donald Trump Says He Has ‘Three or Four’ Candidates in Mind to Lead the Federal Reserve – FT