President Trump Fires Federal Reserve Governor Lisa Cook, Sparking Legal Battle Over Fed Independence

President Trump’s recent dismissal of Federal Reserve Governor Lisa Cook, the first Black woman to serve on the Board of Governors, has sparked a significant legal and political controversy centered on the independence of the Federal Reserve. Trump cited allegations of mortgage borrowing impropriety as cause for the firing, but Cook disputes the president's authority to remove her, setting up a likely legal battle that could reach the Supreme Court due to ambiguous provisions in the Federal Reserve Act regarding removal "for cause." This unprecedented move is widely viewed as part of a broader pattern by President Trump to undermine Black leadership and challenge institutional independence, including his longstanding criticism of Fed Chair Jerome Powell and threats to remove him. The situation has unsettled markets, with concerns about inflation, interest rate cuts, and economic policy uncertainty intensifying. Experts warn that these actions threaten the Federal Reserve's insulation from day-to-day politics, which is critical to maintaining economic stability. Civil rights and economic justice organizations have mobilized to defend both Dr. Cook and the Fed's independence against what they consider politically motivated attacks.