President Trump Intensifies Fed Conflict: Fires Governor Lisa Cook
President Trump made a shocking announcement on Sunday evening, declaring that he has dismissed Federal Reserve Governor Lisa Cook. This marks the first instance of a Fed governor’s removal in the central bank’s 111-year history. This unprecedented action significantly intensifies Trump’s ongoing conflict with the independent Federal Reserve, which he has repeatedly criticized for maintaining high interest rates despite his calls for reductions.
Lisa Cook, the first Black woman to be appointed to the Fed’s Board of Governors, has been subjected to allegations of mortgage fraud by the Trump administration. However, she has not been formally charged with any misconduct. Legal pundits are questioning Trump’s authority to dismiss Cook, as federal law permits removal only “for cause”. This confrontation surfaces as Fed Chair Jerome Powell recently suggested possible rate cuts, leading to markets now predicting an 89% likelihood of a rate cut in September.
Source: CNN Politics