Donald Trump just fired a shot straight at the heart of the Federal Reserve.
The president announced he’s removing Fed governor Lisa Cook — the first Black woman to ever serve on the board.
He claimed she made false statements on mortgage agreements.
His justification? That the Constitution gives him the power to do so.
But there’s a catch: presidents don’t usually have the authority to sack Fed officials.
What’s Her Response?
Cook wasted no time pushing back. “President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so,” she said, vowing not to resign.
Her lawyer, Abbe David Lowell, went further: “We will take whatever actions are needed to prevent [Trump’s] attempted illegal action.”
If this feels unprecedented, that’s because it is.
No president has ever tried to oust a Fed governor like this. And it comes at a tense moment.
Trump has been hammering the central bank, especially Chair Jerome Powell, over what he sees as stubbornly high interest rates.
Some legal experts say this could end up in court, with the White House forced to prove “cause” for the removal.
So here’s the big question: is this about the law, the economy — or Trump tightening his grip on the Fed?
