Trump’s Attempt to Oust Fed Governor Lisa Cook Threatens Central Bank Independence

President Donald Trump's unprecedented MOVE to remove Federal Reserve Governor Lisa Cook signals a direct assault on the central bank's independence. The action follows Trump's repeated demands for aggressive rate cuts, which economists warn could reignite inflationary pressures.

Cook, one of 12 voting members on the Fed's rate-setting committee, vows to challenge the dismissal in court. The confrontation comes as TRUMP escalates criticism of Fed Chair Jerome Powell for maintaining steady interest rates against presidential preferences.

Former Fed governor Frederic Mishkin characterizes the pattern as a deliberate erosion of institutional autonomy. Market participants watch closely as political interference risks compromising the Fed's primary mandate of price stability.