Donald Trump has launched another move to exert his own influence over America’s institutions by announcing the sacking of Federal Reserve governor Lisa Cook – a first in its 111-year history
Donald Trump has announced the sacking Lisa Cooke, the governor of the Federal Reserve, sparking a fierce standoff.
The US President broke with 111 years of Federal Reserve history when he ‘fired’ Cook on Monday evening. Trump has been impatient with the Federal Reserve over its reluctance to not slash interest rates, which he claims would stimulate the economy while critics say it would spike inflation.
But the move has sparked a defiant stand off with Cook stating on Monday she was not going anywhere. She said: “President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so.
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“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 also said in a statement that she vowed to take action against what they branded an “illegal” move.
He said: “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.”
The move clears a pathway for Trump to appoint a loyalist who can then work to takeover the institution. Trump said he sacked Cook over allegations she committed mortgage fraud.
He said on TruthSocial: “In light of your deceitful and potentially criminal conduct in a financial matter…I do not have such confidence in your integrity.” Cook is the latest figure to face mortgage fraud claims from Trump.
The firing is an escalation and Trump has been battling to curb the independence of the Federal Reserve. Trump said he has the authority to remove Cook but doing so would raise questions about the institution’s independence.
The move will set off a legal fight between Cook and Trump and she could be allowed to remain in place until it is resolved. Mr Trump previously exerted his will when he fired the head of the US Bureau of Labor Statistics after it published figures he did not like.
The department revised jobs numbers down by more than 250,000 which led Trump to claim the figures were published to make his administration “look bad.” The department previously published more favourable figures although revisions are not uncommon as more data filters through.