Bloomberg published an exclusive report on July 2 that, after the U.S. Supreme Court this week blocked the firing of Federal Reserve Board member Lisa Cook, Trump and his allies are pushing ahead with plans to reshape the Fed. According to sources familiar with the matter who spoke on condition of anonymity, senior officials and outside allies are actively studying how to remove Fed board members, targeting Cook and former Chair Jerome Powell.

Scope of the Supreme Court Ruling and Trump Allies' Legal Interpretation

The Supreme Court ruling this week blocked the Trump administration from firing Fed board member Lisa Cook, ostensibly cementing the Fed's independence from the executive branch. However, sources familiar with the matter said Trump's allies have not backed down; instead, they interpret the ruling as having "limited scope," arguing it provides a "procedural path" to successfully remove Cook.

Some closely watching the Fed also cautioned that the ruling does not fully protect the Fed from future political attacks. Trump himself stated in a CNBC interview that the court's ruling was based on procedural issues rather than substantive judgments, and said the administration would initiate procedures to remove Cook from the Fed.

Two Targets Revealed by Sources and the Atlanta Fed President Vacancy Layout

According to information from sources familiar with the matter who spoke to Bloomberg on condition of anonymity:

Lisa Cook: Although the Supreme Court ruling allows her to remain temporarily, sources say she remains one of the targets for removal.

Jerome Powell (former Chair): Also considered a target; Trump has continued to criticize Powell since returning to office for not cutting interest rates faster, and has publicly stated his stance on considering firing him.

Atlanta Fed President Vacancy: The Trump administration sees this vacancy as another opportunity to influence the Fed; Treasury Secretary Bessent is using his network to find candidates, as the Atlanta Fed's economic analysis is closely watched by markets, and its president will participate in rate-setting votes in 2027.

White House and Treasury Responses, and Policy Background on Fed Rate Cut Prospects

White House spokesman Kush Desai did not directly comment on the specific issues mentioned in the Bloomberg report, stating: "President Trump and administration officials have always held the same position: everyone has full confidence in Fed Chair Kevin Warsh. Despite short-term disruptions in energy markets, the administration's supply-side policies are curbing inflation, paving the way for future rate cuts." The Treasury did not respond to Bloomberg's request for comment.

On the rate cut outlook via Polymarket, according to the Fed's latest forecasts released in June, about half of officials believe the Fed may even need to raise rates (rather than cut) this year, with several regional Fed presidents particularly concerned about the inflation outlook. Trump's previous nominee, current Fed Chair Kevin Warsh, publicly echoed Trump's stance that "rates should be lower" during the pre-nomination phase.

Frequently Asked Questions

Does the Supreme Court ruling protect Lisa Cook's job security?

According to Bloomberg's report, the Supreme Court ruling blocked the direct firing action, allowing Cook to remain temporarily; however, sources familiar said Trump's allies believe the ruling's scope is limited and see it as providing a "procedural path" to remove Cook, and are redoubling their research on this. Specific legal developments should be based on subsequent rulings by the Supreme Court and related judicial procedures.

Why is the Atlanta Fed president position seen as a key target by the Trump administration?

According to Bloomberg's report, sources familiar said the Atlanta Fed's analysis on economic growth and other areas is closely watched by markets, and the Atlanta Fed president will participate in the Federal Open Market Committee (FOMC) rate-setting votes in 2027; Treasury Secretary Bessent is searching for a successor. Specific progress should be based on official announcements.

What is the outlook for Fed rate cuts this year?

According to the Fed's forecasts released in June 2026, about half of Fed officials believe it may even need to raise rates, rather than cut, this year; several regional Fed presidents expressed concerns about the inflation outlook. The latest probability changes on the CME FedWatch tool should be based on real-time market data.