Summary
President Trump announced he is firing Federal Reserve governor Lisa Cook using Article II of the Constitution and the Federal Reserve Act of 1913. Democratic lawmakers argue that this action is illegal, and they are urging the courts to challenge it. The controversy adds to tensions as Trump pressures the Federal Reserve to change its interest rate policies.
Key Facts
- President Trump stated he is removing Lisa Cook from her position as Federal Reserve governor.
- Trump claims he has the authority under Article II of the Constitution and the Federal Reserve Act.
- The Federal Reserve Act allows a president to remove a governor for cause, but it has not been done before, and its legality is uncertain.
- Trump mentioned claims that Cook listed two primary residences in mortgage applications as part of his reasoning.
- Lisa Cook said she had no intention of stepping down and is preparing to respond to the allegations.
- Democrats see this as an illegal move and are calling for judicial intervention.
- The action happens amid Trump's criticism of Federal Reserve policies on interest rates.
- Trump's decision is part of broader efforts to influence federal agencies for economic purposes.
