Fed Governor Lisa Cook Removal Raises Trump Influence Concerns

President Donald Trump's recent moves to influence the Federal Reserve, including the controversial removal of Fed Governor Lisa Cook, have raised significant concerns among experts and international leaders. Fund manager Clément Inbona highlights Trump's intent to lower interest rates to ease government borrowing costs, warning that such interference risks destabilizing the U.S. economy similarly to Turkey's experience with central bank control. European Central Bank President Christine Lagarde cautions that Trump's threats to dismiss Fed Chairman Jerome Powell and Governor Cook endanger both U.S. and global economic stability by undermining the Fed's independence. Meanwhile, the U.S. dollar remains unusually muted as markets balance strong economic data against anticipated Federal Reserve interest rate cuts, reflecting uncertainty over future monetary policy amid political pressures. Despite these tensions, the Federal Reserve continues with scheduled events and leadership nominations, underscoring ongoing institutional operations amid political scrutiny. Overall, the situation underscores the fragile balance between governmental influence and central bank autonomy crucial for maintaining economic stability.