Trump Challenges Fed Independence with Attempt to Fire Governor Lisa Cook

President TRUMP is testing the boundaries of executive power by attempting to remove Federal Reserve Governor Lisa Cook, a move that reignites debates over the central bank's independence. The action follows Trump's earlier threats to fire Fed Chair Jerome Powell, raising concerns about political interference in monetary policy.

Cook's legal team has announced plans to challenge the termination in federal court, arguing the "for cause" justification—citing alleged mortgage application discrepancies—lacks merit. The lawsuit, expected to be filed in Washington D.C., could set a precedent for presidential authority over Fed officials.

The controversy stems from Cook's 2021 real estate transactions, including a $203,000 mortgage for a Michigan home listed as a primary residence and a subsequent $520,000 Atlanta condo purchase. Cook maintains her innocence, vowing to continue her duties overseeing economic policy.