Federal Reserve Governor Lisa Cook is suing President Donald Trump to challenge his attempt to fire her from the board of the central bank. A president cannot get rid of Fed officials over policy disagreements, but he can dismiss someone "for cause." In recent days, Trump's allies have accused Cook of misrepresentation on her mortgage forms, which Trump cited Monday when demanding her removal. Trump has also repeatedly threatened to fire Fed Chair Jerome Powell as he pushes the central bank to cut interest rates more rapidly.
"The Federal Reserve is meant to be protected from these types of political pressures. It is an independent institution," says Aya Ibrahim, a former senior policy adviser at the White House National Economic Council, where she covered the financial regulation portfolio and supported Cook's confirmation. Ibrahim says Cook, the first Black woman to serve on the Fed's Board of Governors, is an incidental target of Trump's larger "desire to exert control over all parts of government."
|
