Trump’s Conflict with the Federal Reserve: What Lies Behind the Scenes

The dismissal of Lisa Cook from the U.S. Federal Reserve by Trump has intensified the struggle for control over the financial system. Experts see this as groundwork for rejecting cash and introducing the digital dollar.

Aug 28, 2025 - 14:12
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Trump’s Conflict with the Federal Reserve: What Lies Behind the Scenes
Photo taken from public sources

A major conflict is unfolding in the U.S. between President Donald Trump and the Federal Reserve, one that goes far beyond personnel decisions. The formal reason was the dismissal of Lisa Cook, a member of the Fed’s Board of Governors, allegedly over violations in mortgage filings. However, experts believe this is only part of a broader scenario tied to the global transformation of the financial system.

According to the official version, President Trump decided to remove Lisa Cook, citing the fact that she listed two properties as her primary residence in documents, which violated established rules. Cook, in response, stated that Trump had exceeded his authority and refused to resign voluntarily, sparking a lengthy legal battle likely to reach the U.S. Supreme Court.

Yet behind this personnel scandal lies a deeper process. Economists and analysts note that the confrontation between the White House and the Fed coincides with active discussions on introducing the digital dollar (CBDC) — a new form of currency that would completely replace cash. The introduction of a digital currency would allow the government and regulators to monitor every transaction, minimize shadow operations, and abandon the traditional paper-based system.

Many experts believe that the loud conflicts surrounding the Fed are being used to prepare public opinion for a shift to a new format of money. The scenario looks like this: against the backdrop of alleged chaos and the struggle for regulator independence, a need is created for a unified, transparent, and controlled system. The digital dollar will then be presented as a tool to “restore order” and “protect citizens’ interests.”

Cook’s dismissal has already caused a sharp rise in tensions in financial markets. Investors are concerned about the Fed’s future policies and are beginning to reassess bond and credit rates. According to analysts, this could trigger higher mortgage and auto loan rates, as well as increased borrowing costs for businesses, creating favorable conditions for the accelerated adoption of digital instruments.

The confrontation between the Fed and the White House is also intensifying against the backdrop of discussions on lowering the key rate, scheduled in the coming months. Lower interest rates, according to proponents of digital currency, will ease the transition period and make the introduction of CBDC as smooth as possible. Meanwhile, the Fed’s independence is increasingly called into question, with key decisions more often being made directly by the White House.

Analysts agree that this conflict is not only economic but also a political spectacle. The main goal is to prepare the population and the financial sector for a shift to a new model of money management. Paper currency is gradually becoming a thing of the past, and the introduction of the digital dollar will be an important step toward total control over financial flows.

In the context of this transformation, the U.S. is accelerating reforms in the banking system and testing new platforms for digital transactions. There is a high probability that the transition to digital currency will be presented as a necessity amid “instability” and a “crisis of trust” in existing financial institutions.

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ALTN.News Сетевое издание «Интернет ресурс ALTN News - (https://altn.news) Свидетельство о постановке на учет периодического печатного издания, информационного агентства и сетевого издания № KZ32VPY00091991 выдано 26.04.2024 г. Комитетом информации Министерства культуры и информации Республики Казахстан.