During the Jackson Hole Global Central Banking Conference, Trump escalated pressure on the Federal Reserve, with the tense atmosphere at the venue vividly highlighting the difficult prospects facing the world's most important central bank.

According to reports, this year's Jackson Hole symposium stood in stark contrast to previous years, with significantly enhanced security measures during the conference. Federal police, U.S. Park Police, and officers from the Teton County Sheriff's Office were present throughout, with some wearing military uniforms and carrying weapons.

On Friday morning, police had to remove one person—Trump supporter and Fed critic James Fishback—after he confronted Fed Governor Lisa Cook in the hotel lobby, loudly questioning her about mortgage-related controversies.

Last week, Trump expanded his pressure campaign from Fed Chair Powell to Board members. He publicly stated during the conference that if Governor Cook does not resign over mortgage fraud allegations, he would fire her.

On August 24, financial analysts noted that Trump has already appointed two members to the Fed's seven-person Board of Governors. If he gains two more nomination seats, he would secure a majority, potentially fundamentally reshaping the entire Federal Reserve system.

Additionally, analysts indicated that after obtaining a majority, another method the Trump administration might use to weaken the Fed's structure could be firing the presidents of the Fed's 12 regional banks, which would breach key firewalls that have protected the Fed's independence since its establishment in 1913.

**Targeting Cook: Trump's Escalated Pressure Campaign**

The Trump administration's pressure campaign against the Federal Reserve escalated to new intensity during this conference. Previously, pressure was mainly focused on public criticism of Powell, but now it directly targets Board members. Trump publicly threatened to fire Governor Lisa Cook, who is the first Black woman on the Fed's Board of Governors.

Trump's social media account even posted a photo of Lisa Cook with a red X mark, calling her a "fraud." Lisa Cook responded that she would not be "coerced" into resigning "because of certain issues raised in a tweet." A former senior advisor commented: "This should be seen as naked extortion, attempting to coerce policymakers into cutting rates."

This action occurred shortly after Trump nominated his economic advisor Stephen Miran to fill a vacant Board seat. Analysts believe the action targeting Lisa Cook indicates that just one nomination cannot satisfy the White House's desire to control the Fed. As one expert noted, the Trump administration follows "playground rules": "You give them your lunch money, and they'll come back for your backpack."

**Key Steps in Trump's Fed System Reshaping: Control the Board, Fire Regional Fed Presidents**

Analysis indicates that Trump has already appointed two members to the Fed's seven-person Board of Governors. If two more members are nominated, including a new chair appointed next spring, the Fed Board would gain a majority, potentially fundamentally reshaping the entire Federal Reserve system.

After controlling the Board, a more disruptive goal might be weakening the 12 regional reserve banks within the Fed system. The Fed's seven governors are nominated by the president and confirmed by the Senate, while the 12 Federal Reserve Bank presidents are selected by local committees composed of bankers and business leaders from their respective regions.

Both groups vote on interest rate policy, but governors serve in Washington while regional presidents work in cities like New York, Chicago, and San Francisco. Regional Fed presidents serve five-year terms that run concurrently. All 12 presidents must be reappointed by the governors before March next year.

Analysts suggest that if Trump gains a majority on the Fed Board before March next year, they might refuse to reappoint regional Fed presidents. Firing conscientious presidents would break decades of precedent and breach key firewalls that have protected the Fed's independence since its establishment in 1913.

A notable precedent occurred in late 2022, when two Trump-appointed governors, Christopher Waller and Michelle Bowman, abstained from voting on the appointment of Austan Goolsbee as Chicago Fed president.

Historical lessons remain profound. In the 1970s, political pressure led the Fed to make a series of policy mistakes, triggering severe inflation that ultimately required painful economic recession to control.

If investors lose confidence in the Fed's ability to make decisions based on data rather than political pressure, the rewards financial markets have historically given to central bank independence—lower borrowing costs and more stable currency values—could be eroded.