Trump’s power play: A fed official fight back

In a stunning move against the U.S. central bank, President Donald Trump announced he would immediately remove Federal Reserve official Lisa Cook from her post.

This unprecedented decision escalates his ongoing conflict with the Fed, which he has repeatedly criticized for not lowering interest rates.

In a letter posted on his social media platform, Truth Social, Trump claimed he had “sufficient reason” to believe Cook had made false statements on mortgage agreements.

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He also cited constitutional powers as justification for her immediate dismissal.

Cook, however, is not backing down. In a statement, she declared that Trump has no legal authority to fire her and that she will not resign.

Her lawyer, Abbe David Lowell, affirmed that they would take “whatever actions are needed to prevent Trump’s attempted illegal action.”

A highly respected economist, Cook was appointed by President Joe Biden in 2022 and made history as the first African American woman to serve on the Fed’s board of governors.

She is a member of the 12-person committee that sets U.S. interest rates and recently voted to keep them steady, alongside most other members and Fed Chair Jerome Powell.

Trump’s decision raises serious legal questions, and experts believe the White House will have to prove its reasons for firing her in court. The Federal Reserve has not yet commented on the situation.

The announcement sent ripples through the global economy. European markets opened slightly lower on Tuesday, and the interest rate on U.S. government bonds increased.

This move against Cook comes after Trump has also repeatedly suggested firing Powell.