Democrats winning control of the US Senate has created a fresh hurdle for President Donald Trump's efforts to remove Federal Reserve Governor Lisa Cook. The election result could make it difficult for Trump to appoint someone of his choice to replace Cook, even if he succeeds in removing her.
The Senate's new Democratic majority gives the party the power to approve or reject Trump's nominees for judges and heads of executive branch agencies. This includes appointments to the Federal Reserve Board of Governors, according to Jonathan Pingle, an economist at UBS, as noted by Yahoo Finance.
Trump’s bid to remove Lisa Cook
This could directly affect Trump's ongoing attempt to remove Lisa Cook from the Federal Reserve. Trump fired Cook in August 2025, accusing her of committing mortgage fraud by providing false information in loan documents several years before joining the central bank.
Deep Dive
Why does the Democrats’ Senate majority complicate Trump’s effort to remove Lisa Cook?
Can Trump still try to remove Lisa Cook after Democrats win the Senate?
How could the Senate majority affect the choice of Jerome Powell’s successor?
Cook has denied the allegations and challenged Trump's decision in court. She was appointed to the Federal Reserve by former President Joe Biden.
Trump has continued his efforts to remove Cook despite the legal challenge. Last month, he set up a committee to examine whether Cook's statements amounted to legal grounds, or "cause", for removing her from the Federal Reserve.
{{/usCountry}}Trump has continued his efforts to remove Cook despite the legal challenge. Last month, he set up a committee to examine whether Cook's statements amounted to legal grounds, or "cause", for removing her from the Federal Reserve.
{{/usCountry}}Michael Feroli, chief US economist at JPMorgan, said removing Cook would not automatically allow Trump to appoint someone from his administration or a person who supports his policies. He said the Senate's new political balance means that a vacant seat would not necessarily go to a Trump ally, according to Yahoo Finance.
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Jaret Seiberg, an analyst at TD Cowen, said the administration may think twice about firing her because it could struggle to get a replacement approved.
However, the Senate result may not completely stop Trump from trying to remove Cook. Loretta Mester, former president of the Federal Reserve Bank of Cleveland, said the election could reduce his chances of success but she was not convinced that it would prevent him from making another attempt.
Impact on Federal Reserve leadership
The Federal Reserve Board has governors who serve 14-year terms, so changes in its membership usually happen slowly. Only one governor's term is scheduled to end in the next two years: Fed Chair Jerome Powell's term, which ends in January 2028.
This means Trump will face a challenge when choosing Powell's successor. His administration will need to nominate someone who can win the support of Senate Democrats. Otherwise, the seat could remain vacant if the Senate refuses to approve the nominee, according to Yahoo Finance.