Trump attempts to fire Fed governor Lisa Cook amid controversy

In late August 2025, Donald Trump, the former President of the United States, claimed to have fired Federal Reserve governor Lisa Cook during a press briefing at the White House. This unprecedented action was based on mortgage fraud allegations made by a partisan appointee, although Cook has not been charged with any wrongdoing related to these claims. Following Trump's announcement, Cook's attorney proclaimed plans to challenge the legality of the president's move in court, emphasizing that Cook’s position requires a legitimate cause for removal as stipulated by federal law. The Fed’s official reaction was supportive of Cook, highlighting that governors serve long tenures and are protected from direct removal without appropriate justification. The situation escalated further when Kevin Hassett, Trump’s chief economic advisor, suggested Cook should voluntarily take leave amid the controversy, a notion Cook refuted, indicating that she planned to pursue legal action. Trump's declaration has raised alarms among political analysts and economists who see it as an assault on the independence of the Federal Reserve, a critical institution that governs monetary policy in the U.S. The implications of Trump's actions have fueled debate about the separation of powers and the health of American democracy, drawing responses from various sectors of the political landscape. Critics, including prominent economists and political commentators, argue that this attempt reflects a broader trend of undermining democratic institutions in favor of consolidating power, and they question the impact this might have on the integrity of the Fed's operations and future monetary policy. As the legal battle unfolds, it remains uncertain how this controversy will influence public trust in the central bank and the potential ramifications for upcoming economic policies.