Trump Mocks Biden's Fed Board After Powell's Jackson Hole Speech, Labels Chair 'Too Late,' Puts Red X On Cook As President Teases Top Successor

President Trump escalated his Federal Reserve confrontation, threatening to fire Governor Lisa Cook and mocking Chair Jerome Powell as "Too Late" in a Truth Social post. Trump also shared a graphic dividing Fed officials into camps aligned with Biden or Trump, with Powell and Cook receiving negative labels. Powell's dovish Jackson Hole speech sparked broad rallies across equities and cryptocurrencies, with markets pricing in September rate cuts.

President Donald Trump has intensified his confrontation with the Federal Reserve, threatening to fire Governor Lisa Cook and mocking Chair Jerome Powell as "Too Late" in a Truth Social post. The escalation comes as Trump shared a graphic dividing Fed officials into camps aligned with former President Joe Biden or himself, with Powell and Cook receiving negative labels. Powell's dovish Jackson Hole speech sparked broad rallies across equities and cryptocurrencies, with markets pricing in September rate cuts.

Trump stated he would fire Cook if she does not resign, referring to allegations of mortgage fraud brought by Federal Housing Finance Agency Director Bill Pulte. Cook has denied the allegations, stating they are based on a mortgage application from four years ago, before she joined the Federal Reserve. Trump has previously called for her resignation, stating that Cook "must resign, now!!!" [2].

Powell, whom Trump originally appointed as Fed Chair in 2018, earned the "Too Late" label in Trump's graphic, referencing his delayed rate cut timing. The graphic positions Trump appointees Christopher Waller, Michelle Bowman, and nominee Stephen Miran as administration allies. This comes as markets price in September rate cuts following Powell's dovish Jackson Hole speech that sparked broad rallies across equities and cryptocurrencies. Prediction markets show Waller leading Fed Chair succession odds at 51% on Kalshi [2].

Cook's mortgage controversy has intensified, with the Department of Justice taking the matter seriously. The allegations involve Cook improperly designating properties as primary residences for favorable loan terms in 2021. Cook is among three Fed governors appointed by former President Joe Biden whose terms extend beyond Trump's time in office, complicating the president's efforts to gain more control by appointing a majority of the seven-member Board of Governors [3].

The market implications for rate-sensitive sectors have been significant. The Dow Jones jumped 2% to new highs above 45,680, while the S&P 500 climbed 1.4% and the Russell 2000 soared nearly 4%. Bitcoin BTC/USD gained 3.5%, with Ethereum ETH/USD, Solana SOL/USD, and Cardano ADA/USD posting double-digit gains as crypto markets entered "risk-on" mode. Rate-sensitive sectors, including homebuilders, small caps, and regional banks, rallied sharply on accommodation expectations [2].

References:
[1] https://www.forbes.com/sites/saradorn/2025/08/22/trump-threatens-to-fire-federal-reserve-governor-lisa-cook/
[2] https://www.benzinga.com/news/politics/25/08/47297134/trump-mocks-bidens-fed-board-after-powells-jackson-hole-speech-labels-chair-too-late-puts-red-x-on-cook-as-president-teases-top-successor
[3] https://www.aljazeera.com/economy/2025/8/22/trump-threatens-to-fire-us-fed-governor-lisa-cook