White House officials are actively exploring mechanisms to remove members of the Federal Reserve's Board of Governors, signaling that President Donald Trump's campaign to exert greater influence over the central bank is intensifying.
The reports indicate that administration allies are examining legal and procedural avenues to oust specific governors, a move that would represent a direct challenge to the Fed's statutory independence.
This development follows closely on the heels of the US Supreme Court blocking a separate administration initiative, suggesting the White House is pivoting to alternative strategies to achieve its policy goals.
The renewed threat to remove Federal Reserve Governor Lisa Cook, previously reported by Handelsavisen, underscores the persistent friction between the executive branch and the central bank.
Markets have historically reacted sharply to perceived threats to central bank independence, as such actions can undermine confidence in the stability of monetary policy.
Investors are likely to scrutinize any further escalation for signs of political interference that could complicate the Fed's ability to manage inflation and employment mandates without external pressure.