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The President sent this note to the FED.

Share It says, Jerome, you are, as usual too late.

You have cost the USA a fortune and continue to do so, and the FED oftentimes is perceived to be a globalist, elitist institution.

President absolutely has authority to hire a FED governor for cause, and I think the accusations are serious.

The President's concerned about the building and those massive costs overrun, which just tell you that there is no accountability at that organization.

Maybe I should go to the FED.

Am I allowed to appoint myself?

Doug?

I don't know.

Am I allowed to appoint myself at the FED?

I do a much better job than these people.

Donald Trump and his allies have plenty to say about the Federal Reserve.

Not much of it is good.

The US President has been clear that his goal is to get the Central Bank to lower interest rates, but his method has involved unprecedented attacks on the FED, insulting charge your own Powell, criticizing a renovation project at its headquarters and moving to fire FED Governor Lisa Cook.

It's a striking challenge to central bank independence and a developed economy.

But will it work?

Here's why Trump's FED pressure campaign may deliver.

Our White House correspondent Katherine Lucy joins me.

Now for more, Catherine, can you put these actions in context for US?

Has a president ever done more to try to influence the FED.

Presidents have had conflicts with FED chairs before, Presidents have privately put pressure on the FED.

Richard Nixon certainly pushed the FED to keep interest rates low when he was president, But no president has has ever tried to fire a member of the FED board before, and so this is a notable escalation and it really strikes at the heart of the independence of the central Bank.

You've been writing recently about the President's Summer of revenge.

Is he using a similar strategy against others that he opposes.

You've seen a lot of moves from the President in recent months to try and take actions against people he perceives as enemies or as opposing his political agenda.

So we've seen things like stripping people of security clearances, investigations into people, threats, on social media and also firing or attempting to fire people from agencies that tend to operate independently.

So in addition to this move to try to fire Lisa Cook on the FED board, which obviously she is fighting in court, recently saw an FBI raid on Trump's former National Secure the Advisor John Bolton, who has been a high profile critic the administration.

Officials have said there are legitimate concerns about his handling a classified material, but certainly this was perceived by some as an escalation the other there moves against other top officials.

The White House fired the Centers for Disease Control and Prevention director just weeks into her tenure, and he's made threats against any number of people who he sees as criticizing him, like Chris Christi, the former New Jersey governor who used to be a supporter, for example.

So he has made any number of moves in recent weeks and months that I think a lot of people see, as you know, ways to silence or pressure people that the White House sees as not being in line with Trump's plans and his agenda.

And he to remember, he ran a campaign saying I will be your retribution was a line that he used on the campaign trail a lot.

Certainly, Trump and his supporters feel that he has been subjected to unfair investigations and prosecutions, and so some of the systems from that as well.

Is this kind of multi pronged campaign delivering results for the president.

Some of these moves are being countered in court.

In terms of Lisa Cook, We'll have to see what happens with her efforts to stay on the Fed board.

But some people have been removed from their jobs.

Certainly, some people have lost security clearances or One thing the president has done is ended Secret Service protection for the former Vice president Kamala Harris.

You know, typically that does end at the six month mark, but she had been given an extension on that protection.

So some of these moves are sticking, I think.

I think also the concern you hear from a lot from people who are watching this is does this also just have a chilling effect on critics or opponents of the president.

Does this send a message about how things are being run?

Is there any sign that the Federal Reserve is bending to the President's pressure.

Lisa Cook is fighting this in court.

They were in court this week her lawyer is saying there is no grounds to fire her.

They're trying to get an emergency ruling to keep her in her job.

So they are pushing back very hard and certainly fedher.

Jerome Powell, who Trump has excoriated repeatedly publicly on social media in his comments pushing him to cut interest rates, certainly he has not been responsive to Trump's threats.

He has recently opened the door to a potential interest rate cut in September, but that's based on economic indicators like the labor market.

So so far we have not seen a reaction from some of the people that Trump is pushing, But there's also no signs that he's going to stop his campaign.

What could the President do next in his campaign against the Federal Reserve.

Well, I think one key front is obviously how this is going to play out in court.

Both sides are going to fight.

You know, He is going to continue to push that they had cause to fire Cook, and this obviously could go to the Supreme Court ultimately, which will test that theory.

Trump has not let up on his pressure on Jerome Powell in any way, and I think that will continue, and I think you'll see that the president does respond very strongly to market indicators.

So if he feels in the fall or in the coming months that the economy is not going the way that you want, you could see him escalate his anger about rate cuts even more aggressively.

Is there anything to be learned from this exchange between Donald Trump and the Federal Reserve in terms of a playbook for others who might find themselves the subject of attacks by Donald Trump of a way to respond.

Is it a good model for how to resist pressure from the president?

What we've seen so far in Trump's presidency is that the place where he is most likely to be checked is in court.

He doesn't mean that he has always checked.

Some things that he has done have been upheld by the court.

It's been a mixed bag, but there's been very little pushback on from Republicans on Capitol Hill or in other parts of government, and so fighting his moves in the court system so far seems to be people's best strategy.

Catherine Lucy, our White House correspondent.

Thank you for more explanations like this from our team of three thousand journalists and analysts around the world.

Go to Bloomberg dot com slash Explainers I'm Stephen Caroll.

This is here's why.

I'll be back next week with more.

Thanks for listening.