Trump’s Fed Power Play Threatens Central Bank Independence

President TRUMP has escalated his confrontation with the Federal Reserve by moving to fire Governor Lisa Cook, testing the limits of presidential authority over the central bank. The unprecedented move comes despite last week's conciliatory gestures from Fed Chair Jerome Powell.

Legal scholars warn this could mark a turning point for Fed independence. Cook's refusal to step down and planned lawsuit sets up a constitutional clash, while market analysts speculate about implications for monetary policy. TradFi circles are buzzing with concern that Trump may be attempting to stack the Fed's seven-member board with loyalists.

The confrontation recalls Trump's previous threats against Powell over interest rate policy, though Supreme Court precedent protects the chair's position. This new strategy targeting individual governors could circumvent those protections while achieving similar influence over fiscal policy.