WASHINGTON, D.C. – President Trump is trying to remove Federal Reserve Governor, Lisa Cook, alleging her of mortgage fraud. Cook is firing back and said she will not resign. Experts worry the President is trying to take control of the Fed, which is designed to be independent from the White House.
The President made the announcement on Truth Social. She has not been charged with any crime. There are reports from Cook’s lawyer which states, “no cause exists under the law” for Trump to fire her. We expect there could be a long legal fight with the President over this move.
Political scientists said the Federal Reserve is designed to work as an independent agency with the goals of limiting inflation and making sure unemployment doesn’t get too high. There are concerns that this is the President’s first step in trying to strip this institution’s independence.
“The Federal Reserve board was designed to not be political,” said Dr. Todd Belt, professor and director of political management at George Washington University. “The length of the terms and the staggering of the terms allows the board to act independently in political forces. You want the economy not to be subject to political forces so that politicians can’t use it to try to gas up the economy when things are bad so they can get a re-election.”
It’s well known the President has been frustrated with the Federal Reserve and has tried to get them to lower interest rates. Just a few days ago, the Fed chairman signaled they could lower rates at their next meeting in September.
Experts warn that meddling with the Fed’s impudence could have economic and financial consequences.
“This is part of a broader scheme that the President is going after to politicize data, to try to make sure he has people within government even in independent agencies that are more compliant for him to change what the history was with the 2020 elections and to put a glossier sheen on the history books of his term in office,” said Dr. Belt.
