 "'Trump abused power': Move to fire Fed governor heads to court")
The Federal Reserve pushed back against political interference after President Donald Trump announced the dismissal of Governor Lisa Cook late August 25 evening in a move widely described as ‘unprecedented’ and potentially “unlawful”.
The central bank highlighted the independence of its governors, citing their long terms and statutory protections but added it would comply with any final ruling from the courts. Cook, who was appointed in 2022 by then-President Joe Biden and is the first Black woman to serve as a Fed governor, is preparing to challenge her removal. Her lawyer denounced Trump’s decision as “illegal” and an abuse of executive authority.
The dismissal attempt follows accusations from Bill Pulte, director of the Federal Housing Finance Agency, who alleged Cook was involved in mortgage fraud, though no charges have been filed against her. The nature of the allegation has drawn comparisons to civil cases Trump himself has faced.
In the Fed’s 111-year history, no president has ever tried to fire a governor. Trump’s move reflects his broader pattern of “breaking” institutional norms and consolidating control across government bodies.
Since returning to the White House in January, he has presided over the mass exit of civil servants, dismantled agencies, and blocked billions in congressional spending, moves critics say illustrate his growing reach over traditionally independent institutions.
Cook, a former Marshall Scholar with degrees from Oxford University and Spelman College, previously taught at Michigan State University and Harvard Kennedy School. Her Senate confirmation in 2022 passed only after a 50–50 vote was broken by then–Vice President Kamala Harris, with Republicans largely opposing her nomination.
Impact Shorts
More ShortsTrump has long pressured the Fed to slash interest rates, a campaign he reignited this year by demanding deep cuts. He has also threatened to fire Fed Chair Jerome Powell but recently backed down from that fight. If Cook is removed, Trump would gain the chance to reshape the seven-member board, securing a majority aligned with his economic agenda.
Two other governors are already Trump appointees, and his White House has put forward economist Stephen Miran for a temporary seat that expires in January. Trump has said Miran could be considered for Cook’s role if it is vacated, while reports suggest former World Bank President and Trump ally David Malpass is also being discussed as a contender.
Cook’s legal challenge is expected to be closely watched, with critics framing the episode as yet another test of Trump’s use and alleged abuse of presidential power.
With inputs from agencies
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