US EditionDoes Donald Trump ‘Firing’ Lisa Cook Breach Fed Independence — and What Precedent Protects Her?
Trump's move to remove Cook amid mortgage fraud allegations intensifies debate over the Federal Reserve's independence and upcoming interest rate decisions, with markets expecting a September cut.
- On Monday, President Donald Trump announced he would fire Federal Reserve Governor Lisa Cook, who says she will contest the removal while futures markets price an 86% chance of a September 16 quarter-point rate cut.
- The move built on long-running pressure from Trump, who acted after Bill Pulte asked the DOJ to investigate Lisa Cook for alleged mortgage fraud and named an ally to replace former Fed Governor Adriana Kugler.
- New York Fed President John Williams said maintaining central bank independence is vital and praised Lisa Cook, adding the Fed will likely reduce rates from the current fed funds rate 4.25% to 4.50%.
- Removing Cook would give President Donald Trump space to name a Fed Governor replacement more likely to support sweeping rate cuts, while Jerome Powell, Fed Chair, faces term expiration next May, raising long-term policy uncertainties.
- Long ago, the Treasury-Fed Accord of March 4, 1951 secured Fed independence and the dual mandate, while Ben Bernanke warned political pressure risks inflation beyond the 2% target amid Trump's push for easy-money policy.
21 Articles
21 Articles
Google Backing Fired Fed Gov Despite Fraud Allegations, Trump Dismissal?
Exclusive: Federal Reserve Gov. Lisa Cook may soon be out of a job following mortgage fraud accusations — but that has not stopped Google from propping up leftist sources in her defense, the Media Research Center can confirm. An MRC study found on Wednesday that Google almost entirely excluded right-leaning sources from search results related to President Donald Trump’s move to fire Cook. The embattled Biden appointee is under DOJ investigation …
President Donald Trump’s chief economic adviser said Lisa Cook should take a leave while his status on the Federal Reserve Board is being litigated. “If I were her, in her situation, I would leave right now,” Kevin Hassett, director of the National Economic Council, said Wednesday, adding that he believed it was “the most honorable thing.” On Monday, Trump sent Cook a letter saying that he had fired her “with immediate effect” from the central b…
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