Trump Fires Lisa Cook from the Federal Reserve Amid Legal Controversy
August 26, 2025132 ViewsRead Time: 1 minutes
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U.S. President Donald Trump took an unprecedented step today, Tuesday, by firing Lisa Cook, the first African American woman to serve as a member of the Federal Reserve, due to allegations related to controversial mortgages. The decision raised concerns about the independence of the U.S. central bank and executive interference in monetary policy.
Impact of the Dismissal on Markets
• Wall Street indices opened slightly lower.
• Expectations for interest rate cuts increased.
• Confidence in the Federal Reserve's ability to combat inflation declined.
Legal Controversy
• Trump relied on Article II of the Constitution and the Federal Reserve Act of 1913.
• Cook rejected the dismissal, asserting that "there is no legal authority" for Trump to remove her.
• The law firm of Abbe Lowell described the decision as "illegal and lacking basis".
Political Background
• The dismissal is part of a broader campaign by the Trump administration against diversity and inclusion programs.
• Trump has previously fired African American women from high government positions.
The Federal Reserve is scheduled to hold its policy meeting on September 16 and 17, amid anticipation of the implications of this move on U.S. monetary policy.
