URGENT UPDATE: In a shocking and unprecedented move, Donald Trump has announced the firing of Lisa Cook, a governor of the Federal Reserve, marking the first time in the institution’s 111-year history such an action has occurred. The announcement came late on Monday evening, igniting a fierce standoff between the President and Cook, who has vowed to remain in her position.
Cook’s refusal to resign has sparked a significant confrontation. She stated on Monday, “President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so. I will not resign. I will continue to carry out my duties to help the American economy as I have been doing since 2022.”
Her lawyer, Abbe Lowell, echoed her sentiment, declaring the firing an “illegal” act. He stated, “President Trump has once again taken to social media to ‘fire by tweet’ and once again his reflex to bully is flawed and his demands lack any proper process, basis or legal authority. We will take whatever actions are needed to prevent his attempted illegal action.”
Trump’s frustration with the Federal Reserve has reached a boiling point, as he has consistently criticized the institution for not slashing interest rates, which he believes would stimulate the economy. Critics, however, warn that such a move could escalate inflation. The President’s statement on TruthSocial accused Cook of “deceitful and potentially criminal conduct” related to allegations of mortgage fraud.
The implications of this firing are significant, as it clears a pathway for Trump to appoint a loyalist to the Federal Reserve, potentially undermining the institution’s independence. Legal experts warn that if Cook’s dismissal is contested, she may remain in her role until the legal battle is resolved.
This development follows Trump’s previous actions to exert influence over federal agencies, including firing the head of the US Bureau of Labor Statistics after unfavorable job figures were published. The ongoing tensions highlight a critical moment for the Federal Reserve and its operations amidst a turbulent economic landscape.
As the situation unfolds, observers are keen to see how Cook’s defiance will play out legally and what steps Trump will take next. The fight for the independence of the Federal Reserve may intensify, with potential ramifications for the U.S. economy and political landscape.
Stay tuned for more updates as this story develops.