Tue, 26 Aug 2025

Tue, 26 Aug 2025 Does the US president have the power to sack a Federal Reserve governor?

President Trump takes aim at Lisa Cook, a central bank official - we unpack what it all means.
The President of the United States has requested the removal of Lisa Cook from her position as a Governor on the Federal Reserve Board, citing allegations of mortgage fraud. However, it remains unclear whether an investigation into these claims has been initiated or if Ms. Cook will be charged with any wrongdoing. The decision is seen as unprecedented political interference by Democrats and could lead to a significant change in the monetary policy of the US. The Federal Reserve plays a crucial role in setting interest rates and promoting economic stability, with its decisions being independent from the President's approval. If Ms. Cook's removal is successful, it would be the first time a Governor has been removed for cause under the Federal Reserve Act.
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