Trump Removes Federal Reserve Official Lisa Cook
In a bold move, President Donald Trump has announced the immediate removal of Federal Reserve official Lisa Cook from her position, intensifying his clash with the US central bank.
Trump took to his social media platform Truth Social to share a letter addressed to Cook, informing her of his decision to oust her from the bank’s board of governors with immediate effect.
Accusing Cook of making false statements on mortgage agreements, Trump cited constitutional powers that he believes grant him the authority to remove her.
Cook, however, has pushed back against Trump’s move, asserting that he lacks the power to dismiss her and stating that she will not resign.
“President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so,” Cook declared in a statement.
Refusing to step down, Cook emphasized her commitment to fulfilling her duties to support the American economy, a role she has undertaken since 2022.
Her lawyer, Abbe David Lowell, vowed to take legal action to combat Trump’s “attempted illegal action.”
The Federal Reserve has remained silent on Trump’s announcement, which came late on Monday, leaving the situation in flux.
Trump’s decision to remove Cook, the first African American woman to serve on the Fed’s board of governors, is seen as an unprecedented move in the central bank’s history.
Legal experts anticipate a potential legal battle as the White House may need to substantiate its grounds for firing Cook, as detailed in Trump’s letter.
Amid escalating tensions with the Fed, particularly with Chair Jerome Powell, Trump’s actions reflect his frustration with the central bank’s reluctance to lower interest rates.
Last week, Trump called for Cook’s resignation following allegations of mortgage fraud, prompting a public outcry and demands for an investigation.
Cook, however, maintains her innocence, attributing the allegations to a past mortgage application and reiterating her dedication to addressing any legitimate concerns.
If Cook and the Fed challenge Trump’s decision, it could ignite a standoff between the central bank and the White House, potentially jeopardizing the Fed’s independence.
Trump’s contentious relationship with Powell has further strained as the president criticizes the chair’s reluctance to support drastic interest rate cuts.
Despite Powell hinting at an upcoming rate cut in September and downplaying the inflationary effects of Trump’s tariffs, the US dollar weakened in Asian trading on Tuesday amid speculation of more rate cuts under a new appointee. — BBC
