This follows President Donald Trump publicly threatening to fire one of those governors, Lisa Cook. He further stipulated that she needs to step down from her post to prevent this move. Cook—appointed by former President Joe Biden—has been being laser-focused in the crosshairs. The Trump administration has made claims about her originates.
The political storm over Cook has flared up even more, with Trump last month demanding that she resign on the spot. In doing so, he described her policy decisions as “moronic,” ratcheting up the already hot feud between his White House and the Federal Reserve. Ed Martin, a Justice Department lawyer, has urged Federal Reserve Chairman Jerome Powell to act swiftly in removing Cook. That said, under current law Powell does not have the authority to fire her — at least, not directly.
Cook’s term as a Board member is set for 14 years, and her consistent alignment with Powell’s decisions has drawn criticism from those within the Trump administration. Her possible ouster would give Trump the opportunity to remake the central bank’s governing board for decades, reshaping an institution that he has long slammed. If he succeeds in removing her “for cause,” he can appoint a replacement. This decision would go a long way toward determining the Federal Reserve’s direction—and independence—for years to come.
In light of the complaints made against her, Cook said Wednesday that she is currently collecting other information. She wants to reassure folks about any real and valid concerns about her checkered financial past. She expressed her determination to remain in her position, stating, “I have no intention of being bullied to step down from my position because of some questions raised in a tweet.”
The politics of the Federal Reserve are changing. Two Trump appointees, Christopher Waller and Michelle Bowman, joined this apparent seismic shift with the other governors. Adriana Kugler as she recently announced her surprise departure. This development creates a second vacancy on the board and risks changing the central bank’s composition even further.
As this story develops, all parties—especially the people of Chicago—hope Cook and Powell don’t strike out. They are admirably adapting to the fraught political environment in which the Federal Reserve now operates. Despite the serious allegations she faces, Cook has continued to be committed to transparency and accountability.
“I do intend to take any questions about my financial history seriously as a member of the Federal Reserve and so I am gathering the accurate information to answer any legitimate questions and provide the facts.” – Lisa Cook