Trump just lost his ability to take control of this part of the U.S. economy

Democratic gains in this week's midterm elections give the Federal Reserve a new shield against pressure from President Donald Trump, MS NOW reports. Democrats are on track for at least 54 Senate seats, and when the chamber changes hands on Jan. 3, the president will lose his smooth route to installing loyalists on the Fed's Board of Governors, whose seven seats require Senate confirmation and who sit on the 12-member rate-setting committee.

Trump has pushed for lower rates for a long time, even after the Justice Department opened a criminal probe of former Chair Jerome Powell. Kevin Warsh now leads the Fed, which raised rates to 3.75%-4.00% in September while inflation remained well above its 2% target. Trump has said rates belong at 1% or less. Sen. Elizabeth Warren, who opposed Warsh's confirmation, is next in line to chair the Banking Committee and could block unqualified nominees, with Sherrod Brown hoping to rejoin the panel.

One open dispute remains: Trump's attempt to remove Governor Lisa Cook over unproven mortgage fraud allegations. Judges, including the Supreme Court, have stopped him, but any successor would need Democratic approval.

Summarized by PolitiKool from MS NOW’s reporting. Read the full story at MS NOW →