Trump has made it clear that he wants the Fed to sharply reduce borrowing costs, and the central bank — under Jerome Powell's leadership — has faced constant criticism from the White House this year on everything from monetary policy decisions to cost overruns on a major building renovation project.

Trump's actions are part of a broader strategy to assert control over the country's key economic institutions, a move that will undoubtedly face fierce resistance in political circles. However, it is worth noting that presidential powers over the Fed are limited. The president can appoint members to the Board of Governors, but has no direct authority over the chair, who enjoys significant independence. Therefore, even if Cook were removed, Trump would still face serious obstacles in implementing his policies through the Fed.

Influence over the Fed is not only a matter of economic strategy but also of political power. Control over monetary policy allows influence on inflation, interest rates, and employment, which in turn can affect the president's approval ratings and reelection chances. This is why the struggle over the Fed is so intense and draws such close attention.

It should also be noted that any attempts to pressure the Fed politically could undermine its independence and credibility, which could ultimately have negative consequences for the U.S. economy and the global financial system.

Yesterday, the president demanded Cook's resignation after Federal Housing Finance Agency director Bill Pult accused her of mortgage fraud, alleging she distorted information in loan applications to obtain more favorable terms. Cook, whose term runs until 2038, later responded, stating she would not be forced to resign. "This is a new attempt by the administration to increase control over the Fed," she said in an interview. "They are using every lever possible to gain that control."

The attacks on Cook highlight how far the administration is prepared to go to expand its influence over the central bank, which has traditionally been shielded from political pressure in setting interest rates. The White House has already used similar tactics against political opponents such as California Senator Adam Schiff and New York Attorney General Letitia James.

This also casts a shadow over the Fed's annual conference in Jackson Hole, which concludes today with a keynote speech by Chair Powell. He will deliver the final policy address before an assembly of central bankers from around the world, and he is unlikely to give Trump what he wants to hear — a guarantee of imminent rate cuts.

So far this year, Fed officials have ignored the president's demands to lower rates, citing the inflationary risks from his tariffs as the reason for maintaining the base rate.

In any case, unexpected statements could have a strong impact on the currency market, as could progress in efforts to remove Lisa Cook from her position.

Technical outlook for EUR/USD: Buyers now need to take control of the 1.1600 level. Only then will a move toward testing 1.1630 be possible. From there, the pair could climb to 1.1658, though doing so without support from large players will be quite difficult. The most distant target is the 1.1690 high. If the instrument declines, I expect significant buyer activity only around 1.1565. If no major demand appears there, it would be better to wait for a retest of the 1.1530 low or consider opening long positions from 1.1490.

Technical outlook for GBP/USD: Pound buyers need to take the nearest resistance at 1.3420. Only this will open the way toward 1.3450, above which breaking through will be rather difficult. The most distant target is the 1.3480 level. If the pair falls, bears will try to take control of 1.3380. Should they succeed, a breakout of this range would seriously damage the bulls' positions and push GBP/USD down to the 1.3346 low, with prospects of extending toward 1.3305.