Trump Gaining Control of the Fed — What’s Ahead in 2026

President Trump is actively attempting to gain control over the Federal Reserve by installing loyalists and influencing interest rate decisions, which is expected to lead to aggressive rate cuts and quantitative easing, potentially accelerating inflation and de-dollarization.

• President Trump is aggressively attempting to influence the Federal Reserve's interest rate policy through personnel changes.

• The Federal Reserve operates as a private cartel of bankers, not a government entity, raising concerns about its constitutionality and accountability.

• Expect accelerated interest rate cuts and quantitative easing by 2026 under a Trump-influenced Fed, potentially leading to increased inflation and asset price boosts.

Amidst fears of the Federal Reserve losing its independence, President Trump is working to replace key voting members and the Chair with loyalists who support dramatic interest rate cuts, aiming to boost the economy and reduce government debt interest payments. This push for an easier monetary policy is expected to escalate significantly by 2026, leading to increased inflation and asset prices, despite the Federal Reserve's existing slower rate-cutting projections.

Federal Reserve's Structure

• 00:00:29 The Federal Reserve is not part of the U.S. government; its name is a 'misnomer' as it is neither 'federal' nor does it have 'reserves.' It operates as a 'private cartel of bankers' composed of 12 Federal Reserve Banks, which are structured similarly to private corporations. These Reserve Banks are owned by member banks, with dividends legally paid to them, making the Fed independent of direct government control in setting monetary policy.

Trump's Monetary Policy Goals

• 00:01:43 President Trump has consistently advocated for dramatic cuts to interest rates, urging the Federal Reserve to reduce rates from 4.5% to 1.5%. His primary motivations include boosting the economy, lowering borrowing costs, and decreasing the U.S. government's interest payments on its loans. However, such aggressive rate cuts would likely re-accelerate inflation, conflicting with the Federal Reserve's more gradual projection of reaching 3% to 3.25% by the end of 2028.

Efforts to Pack the Fed

• 00:02:53 President Trump is actively trying to replace Federal Reserve voting members with individuals aligned with his monetary policy goals. Recent actions include the resignation of Biden-nominated Adriana Kugler and an ongoing attempt to remove Board Governor Lisa Cook over allegations of mortgage fraud, currently pending Supreme Court review. Trump successfully nominated Stephen Moran, his economic advisor, who was confirmed and sworn in just before a September 17th meeting, where he dissented by advocating for a deeper 0.5% rate cut instead of the approved 0.25%.

Future of Fed Leadership

• 00:04:30 The term for Jay Powell, the current Chair of the Federal Reserve, is set to expire in May 2026, creating an opportunity for President Trump to appoint a loyalist who will implement his desired policies. The Chair holds 'overwhelming influence' over the other voting members, who often exhibit a 'herd mentality' and rarely dissent. This strategic appointment is expected to solidify Trump's control over the Federal Reserve's direction.

Federal Reserve's Constitutionality

• 00:05:46 The Federal Reserve is considered unconstitutional because the U.S. Constitution grants Congress power over money, not a private organization, as outlined in Article 1, Section 8. The Founding Fathers, including Thomas Jefferson and James Madison, were deeply skeptical of central banks, believing control over money should remain with the people's representatives. The Fed also lacks adequate checks and balances, impacting the economy without direct congressional approval and operating without accountability to voters, while its close ties to the private banking sector give private banks significant influence.