Trying to Seize the Fed
Our new book is The Comeback: The 2024 Elections and American Politics. The second Trump administration is has been full of ominous developments President Donald Trump is removing Federal Reserve Governor Lisa Cook effective immediately, according to a letter he posted to Truth Social on Monday night.
In the letter, Trump writes: "Pursuant to my authority under Article II of the Constitution of the United States and the Federal Reserve Act of 1913, as amended, you are hereby removed from your position on the Board of Governors of the Federal Reserve, effective immediately."
Trump cites a "criminal referral" from Federal Housing Finance Agency Director William Pulte, in which Pulte accused Cook of mortgage fraud.
In a statement, Cook responded by saying: "President Trump purported to fire me 'for cause' when no cause exists under the law, and he has no authority to do so. I will not resign. I will continue to carry out my duties to help the American economy as I have been doing since 2022."
Under the Federal Reserve Act, the only reason Federal Reserve governors can be removed from their positions is “for cause,” or some kind of wrongdoing.
Cook has not been charged with any crime, and her removal is likely to lead to a court battle between the independent central bank and the executive branch.
The Supreme Court said in May, while granting Trump the ability to remove members of other independent agencies, that the Federal Reserve is a “uniquely structured, quasi-private entity” that has its own distinct historical tradition. That led many to believe the bar would be high for Trump to be able to remove any Fed board members or its chairman.
