President Trump’s latest attempt to assert more influence over the economy is headed to court. The attorney for the Federal Reserve Board member whom Trump fired claims the president doesn’t have that authority.
The Federal Reserve says it will comply with whatever the courts decide regarding whether the president has the legal authority to fire Fed Board member Lisa Cook.
In a cabinet meeting on Tuesday, President Trump insisted that Cook—one of seven governors on the board—had to be removed over allegations she committed mortgage fraud.
“She seems to have had an infraction, and she can’t have an infraction,” Trump said. “We need people that are 100% above board, and it doesn’t seem like she was.”
For months, the president has been pressuring Federal Reserve Chair Jerome Powell to lower interest rates.
While the president appoints Fed governors, economists say the central bank is designed to operate independently from political influence.
“Fed independence is very important, and countries that have independent central banks tend to be more prosperous than those that do not,” said Ted Rossman with Bankrate.com.
Reporters asked the president if he was targeting Cook simply because he disagreed with her.
Reporter: “Is your administration weaponizing government?”
President: “No.”
Reporter: “By digging into the mortgage records of officials you don’t like?”
Trump: “No, they’re public. I mean, you can find out those records. You can go check out the records yourself.”
Cook, a Biden appointee, says she will not resign and has threatened legal action.
Trump has reportedly told advisors he wants to move quickly on a replacement and is prepared to go to court over the firing. The case could reach the Supreme Court.
“It does seem that there are efforts by some around the president to really change the composition of the Fed board here,” Rossman said.
While the Fed fight grabs headlines in D.C., Trump continues to say he intends to send the National Guard into cities like Chicago, New York, and others to fight crime.
He’s already deployed the Guard in Washington, D.C., but Democrats argue that expanding the deployment to other cities is unconstitutional.
“So the line is that I’m a dictator, but I stop crime,” said Trump. “So, a lot of people say, you know, if that’s the case, I’d rather have a dictator. But I’m not a dictator. I just know how to stop crime.”
Illinois Governor J.B. Pritzker is pushing back, insisting there is no emergency that warrants sending troops into the Windy City.
