Trump Tries to Fire Fed’s Lisa Cook, Republicans Wary
In Breaking News from Washington, Republican lawmakers are skeptical about President Donald Trump’s attempt to remove Lisa Cook from the Federal Reserve Board of Governors. Cook is the first Black woman to hold a seat on the Fed board, but Trump claims he is firing her “for cause.” Many Republicans believe his reasoning is weak and could threaten the independence of the Federal Reserve, yet they are staying quiet for now to avoid direct confrontation with the former president.
This development is one of the top stories in today’s Daily news highlights, showing tensions between Trump, Congress, and the Fed.
Trump Claims Cause to Fire Cook
Trump announced his decision to remove Cook on his social media platform, Truth Social, saying he acted under Article II of the U.S. Constitution and the Federal Reserve Act of 1913. The president cited allegations from Bill Pulte, director of the Federal Housing Finance Agency, claiming Cook listed two homes as primary residences when applying for loans.
Cook has strongly denied any wrongdoing. She said, “President Trump purported to fire me ‘for cause’ when no cause exists under the law. I will not resign and will continue my work to support the American economy.”
Sen. Todd Young (R-Ind.) called Trump’s move “breaking new ground” and admitted uncertainty about whether it is legally allowed.
Republican Lawmakers Are Cautious
Several Senate Republicans previously opposed Cook’s nomination in 2022 but now question Trump’s reasoning. A senior GOP aide noted that firing Cook appears to be a way to pressure Federal Reserve Chair Jerome Powell, whom Trump has criticized for not lowering interest rates faster.
Some Republicans emphasize the importance of a politically independent Fed:
- Sen. John Kennedy (R-La.) said, “I believe strongly in the independence of the Federal Reserve. Other countries without independent central banks, like Turkey, have faced severe inflation.”
- GOP senators have historically blocked controversial Trump Fed nominees, such as Stephen Moore and Judy Shelton.
The aide also warned that even if Trump successfully removes Cook, any nominee he chooses would face challenges in the Senate, which could delay confirmation.
Democrats Condemn the Move
Democratic senators reacted angrily to Trump’s announcement.
- Sen. Elizabeth Warren (D-Mass.) called it “illegal” and described the attempt as “an authoritarian power grab” meant to scapegoat Cook for Trump’s failure to lower costs for Americans.
- Senate Minority Leader Chuck Schumer (D-N.Y.) accused Trump of risking the stability of the U.S. economy, saying he is “playing a dangerous game of Jenga with a key pillar of our economy.”
Cook’s attorney, Abbe Lowell, confirmed that legal action is planned to stop Trump from removing her. Lowell said Trump “has no authority to remove” Cook, and the action “lacks any factual or legal basis.”
Fed Independence at Stake
Trump’s move comes amid ongoing tension over interest rates. Republicans and Democrats alike recognize that the Fed’s independence is crucial for managing inflation, employment, and financial stability. The attempt to remove Cook could set a dangerous precedent, potentially undermining trust in one of America’s key economic institutions.
- The Fed plays a vital role in controlling interest rates and stabilizing the economy.
- Interference from the executive branch could cause market volatility.
- Bipartisan support is needed to maintain confidence in the central bank’s decisions.
What Happens Next
Legal challenges are expected to play a major role in the outcome. Cook has vowed to remain in her position, while Trump continues to push his claims. Republican caution, Democratic opposition, and potential court rulings mean the situation could unfold over several months.
This story is featured in today’s Latest News and will continue to dominate Daily news highlights as political, legal, and economic implications emerge.
