Robert Davis
August 26, 2025
RAW STORY
CNN screenshot
A prominent economist bashed President Donald Trump's attempts to fire a Federal Reserve governor on Tuesday.
Paul Krugman, who won the Nobel Prize in 2008 for his work on trade theory, discussed Trump's efforts to fire Lisa Cook from the Federal Reserve with CNN's Jake Tapper on "The Lead." Krugman said Trump has presented "no evidence" that Cook did anything that would warrant her being removed from her job for cause, as he's claimed, and that the move itself is "completely insane."
Cook was appointed by former President Joe Biden and confirmed in a 50-50 Senate vote in 2022. She is the only Black woman to serve as a Federal Reserve governor in the body's history.
"It's banana republic type stuff," Krugman said.
Krugman added that the Federal Reserve system was built with checks and balances to prevent presidents like Trump from raising and lowering interest rates at will. Countries that allow their leaders to manipulate interest rates, such as Turkey, have seen their inflation rates skyrocket, he said.
"This is really awful," Krugman said. "It would be bad enough if he were simply pressuring the Fed or even managing to find some cause to fire somebody, but this is actually saying, 'If you, Federal Reserve official, get in my way or don't follow my orders, I will ruin your life.'"
"This is intimidation, personal intimidation," Krugman continued. "It's right out of the authoritarian playbook. There's a reason that we want the Federal Reserve to be insulated."
Watch the entire clip below or by clicking here.
Fed Governor Lisa Cook to Sue Over Trump's Dubious Dismissal Attempt
One observer warned that the president's move may backfire, as the discovery process of Cook's suit could "find out if the White House ordered a Trump loyalist to move against her."
US Federal Reserve Gov. Lisa Cook speaks at a May 8, 2024 event at the Brookings Institution in Washington, DC.
Photo by Paul Morigi/Brookings Institution/flickr/cc
Brett Wilkins
Aug 26, 2025
COMMON DREAMS
Federal Reserve Gov. Lisa Cook will file a lawsuit challenging US President Donald Trump's attempt to fire her, the economist's lawyer said Tuesday.
Attorney Abbe Lowell said in a statement that Trump "has no authority" to fire Cook, a nominee of former President Joe Biden who has served on the Fed Board of Governors since 2022 and whose term is not set to expire until 2038.
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"His attempt to fire her, based solely on a referral letter, lacks any factual or legal basis," Lowell added. "We will be filing a lawsuit challenging this illegal action."
The US Department of Justice (DOJ) last week launched a criminal investigation of alleged mortgage fraud committed by Cook, who is the third political foe accused of the same crime by Trump.
Federal Housing Finance Agency (FHFA) Director William Pulte, a Trump appointee, in April referred New York Attorney General Letitia James to US Attorney General Pam Bondi and her deputy, Todd Blanche, for criminal prosecution.
"His attempt to fire her, based solely on a referral letter, lacks any factual or legal basis."
James, who is also represented by Lowell, successfully sued the president and theTrump Organization for fraud, resulting in a total of $450 million in penalties and interest and a 3-year ban on doing business in the state. Fraudulent activity for which the Trump Organization was found civilly liable included falsifying the valuations of numerous properties. Last week, a state appellate panel upheld the court's findings that the Trump and his organization committed fraud but threw out the 2022 judgment, calling it "excessive."
Earlier this month, the DOJ also issued a subpoena to James as part of a probe into whether she violated Trump's civil rights by filing the fraud suit.
In May, Pulte also referred Sen. Adam Schiff (D-Calif.)—the lead manager of the first of Trump's two impeachments—to the DOJ.
Trump—who has repeatedly railed against "lawfare" and signed a day one executive order aimed at "ending the weaponization of the federal government—has called for the prosecution of James and Schiff.
Responding Monday to the president's allegations and effort to oust her, Cook said that "Trump purported to fire me 'for cause' when no cause exists under the law, and he has no authority to do so."
"I will not resign," she added. "I will continue to carry out my duties to help the American economy as I have been doing since 2022."
Although a president may fire a Fed board member for cause, no such official has ever been removed in the body's 111-year history.
Critics say Trump's effort to terminate Cook is yet another attempt to bully the Fed and Chair Jerome Powell as his administration pushes the nation's central bank to lower interest rates.
However, some observers, including journalist Greg Sargent, warned Tuesday that Trump's firing of Cook could backfire, as her lawsuit's discovery process may allow Lowell "to find out if the White House ordered a Trump loyalist to move against her."
"The real question this raises is: Why is Pulte scrutinizing mortgages that just happen to belong to many high-profile opponents of Trump, and how did he come to select these targets?" Sargent wrote for The New Republic. "Experts recently told me that this use of the FHFA mortgage-fraud process appears highly suspect at best."
Adam Levitin, a professor at the Georgetown University Law Center, recently accused Pulte of "serving as the attack dog for Trump's attempts to gain control over the independent Federal Reserve Board" and targeting a "political enemies list."
"Pulte's actions are something that should scare all of us: If Cook, Schiff, and James can be targeted, what stops Pulte from threatening to review the mortgage application of anyone who speaks out?" Levitin added. "And if politicized mortgage application reviews are somehow okay, won't politicized [Internal Revenue Service] audits be next?"
One observer warned that the president's move may backfire, as the discovery process of Cook's suit could "find out if the White House ordered a Trump loyalist to move against her."
US Federal Reserve Gov. Lisa Cook speaks at a May 8, 2024 event at the Brookings Institution in Washington, DC.
Photo by Paul Morigi/Brookings Institution/flickr/cc
Brett Wilkins
Aug 26, 2025
COMMON DREAMS
Federal Reserve Gov. Lisa Cook will file a lawsuit challenging US President Donald Trump's attempt to fire her, the economist's lawyer said Tuesday.
Attorney Abbe Lowell said in a statement that Trump "has no authority" to fire Cook, a nominee of former President Joe Biden who has served on the Fed Board of Governors since 2022 and whose term is not set to expire until 2038.
Together, we can defend the truth when it’s under siege.
Our fearless reporting exists only because of readers like you. With your support, we can continue delivering independent journalism that democracy depends on.
"His attempt to fire her, based solely on a referral letter, lacks any factual or legal basis," Lowell added. "We will be filing a lawsuit challenging this illegal action."
The US Department of Justice (DOJ) last week launched a criminal investigation of alleged mortgage fraud committed by Cook, who is the third political foe accused of the same crime by Trump.
Federal Housing Finance Agency (FHFA) Director William Pulte, a Trump appointee, in April referred New York Attorney General Letitia James to US Attorney General Pam Bondi and her deputy, Todd Blanche, for criminal prosecution.
"His attempt to fire her, based solely on a referral letter, lacks any factual or legal basis."
James, who is also represented by Lowell, successfully sued the president and theTrump Organization for fraud, resulting in a total of $450 million in penalties and interest and a 3-year ban on doing business in the state. Fraudulent activity for which the Trump Organization was found civilly liable included falsifying the valuations of numerous properties. Last week, a state appellate panel upheld the court's findings that the Trump and his organization committed fraud but threw out the 2022 judgment, calling it "excessive."
Earlier this month, the DOJ also issued a subpoena to James as part of a probe into whether she violated Trump's civil rights by filing the fraud suit.
In May, Pulte also referred Sen. Adam Schiff (D-Calif.)—the lead manager of the first of Trump's two impeachments—to the DOJ.
Trump—who has repeatedly railed against "lawfare" and signed a day one executive order aimed at "ending the weaponization of the federal government—has called for the prosecution of James and Schiff.
Responding Monday to the president's allegations and effort to oust her, Cook said that "Trump purported to fire me 'for cause' when no cause exists under the law, and he has no authority to do so."
"I will not resign," she added. "I will continue to carry out my duties to help the American economy as I have been doing since 2022."
Although a president may fire a Fed board member for cause, no such official has ever been removed in the body's 111-year history.
Critics say Trump's effort to terminate Cook is yet another attempt to bully the Fed and Chair Jerome Powell as his administration pushes the nation's central bank to lower interest rates.
However, some observers, including journalist Greg Sargent, warned Tuesday that Trump's firing of Cook could backfire, as her lawsuit's discovery process may allow Lowell "to find out if the White House ordered a Trump loyalist to move against her."
"The real question this raises is: Why is Pulte scrutinizing mortgages that just happen to belong to many high-profile opponents of Trump, and how did he come to select these targets?" Sargent wrote for The New Republic. "Experts recently told me that this use of the FHFA mortgage-fraud process appears highly suspect at best."
Adam Levitin, a professor at the Georgetown University Law Center, recently accused Pulte of "serving as the attack dog for Trump's attempts to gain control over the independent Federal Reserve Board" and targeting a "political enemies list."
"Pulte's actions are something that should scare all of us: If Cook, Schiff, and James can be targeted, what stops Pulte from threatening to review the mortgage application of anyone who speaks out?" Levitin added. "And if politicized mortgage application reviews are somehow okay, won't politicized [Internal Revenue Service] audits be next?"
Fed Governor Cook says Trump has no authority to fire her
By AFP
August 26, 2025
The Federal Reserve is expected to hold interest rates steady for a fifth straight meeting despite President Donald Trump's pressure to cut levels. — © AFP Mohd RASFAN
Beiyi SEOW
Federal Reserve Governor Lisa Cook rejected US President Donald Trump’s unprecedented bid to oust her on Tuesday, saying he had no legal authority for such an intervention against a member of the independent US central bank.
After calling for her resignation last week, Trump posted a letter on Monday evening to his Truth Social platform purporting to have fired Cook “effective immediately.”
The decision cited allegations of false statements on her mortgage agreements, claiming “there is sufficient cause to remove you from your position.”
“I will not resign,” said Cook, the first Black woman to serve on the central bank’s board, in a statement shared with AFP by her attorney Abbe Lowell.
“President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so,” she added.
Lowell pledged to “take whatever actions are needed to prevent his (Trump’s) attempted illegal action.”
The potential legal dispute would be the latest test of presidential powers under Trump’s new term, with the 79-year-old Republican — backed by loyalists throughout the government — forcefully moving to exert executive authority.
The Supreme Court’s conservative majority recently allowed Trump to fire members of other independent government boards, but notably created a carveout for the Federal Reserve in its ruling.
Federal law says that Fed officials can only be removed for “cause,” which could be interpreted to mean malfeasance or dereliction of duty.
After calling for her resignation last week, Trump posted a letter to his Truth Social platform purporting to have fired Cook ‘effective immediately’ – Copyright AFP/File SAUL LOEB, ANDREW CABALLERO-REYNOLDS
In his announcement that Cook would be removed, Trump pointed to a criminal referral dated August 15 from the Federal Housing Finance Agency’s director — a staunch ally of Trump — to the US attorney general.
The referral, Trump said, provided “sufficient reason” to believe that Cook might have made “false statements” on one or more mortgage agreements.
One of the alleged false statements was that Cook had claimed two primary residences, one in Michigan and another in Georgia.
Cook has not been charged with a crime and the alleged false statements occurred before she was in her current position.
Earlier this month, Cook said in a statement that she had “no intention of being bullied to step down,” but would take questions about her financial history seriously.
The Fed did not immediately respond to media queries.
In his letter Monday, Trump said: “At a minimum, the conduct at issue exhibits the sort of gross negligence in financial transactions that calls into question your competence and trustworthiness as a financial regulator.”
– Court challenge? –
Senator Elizabeth Warren, the top Democrat on the Senate Banking Committee, called Trump’s move “an authoritarian power grab that blatantly violates the Federal Reserve Act.”
She added in a statement that this “must be overturned in court.”
Trump has been ramping up pressure on the Fed this year, repeatedly criticizing its chief Jerome Powell for not lowering interest rates sooner despite benign inflation data.
Fed policymakers have been cautious in cutting rates as they monitor the effects of Trump’s tariffs on prices.
Trump has made no secret of his disdain for Powell, whom he has called a “numbskull” and “moron.”
Since its last reduction in December, the Fed has held rates at a range between 4.25 percent and 4.50 percent this year. Powell on Friday opened the door to lowering levels at the bank’s upcoming policy meeting in September.
Trump also previously suggested that what he called an overly costly renovation of the Fed’s headquarters could be a reason to oust Powell, before backing off the threat.
The president has picked Stephen Miran, the leader of his White House economic panel, to fill a recently vacated seat on the Federal Reserve board.
Cook took office as a Fed governor in May 2022 and was reappointed to the board in September 2023. She was sworn in later that same month for a term ending in 2038.
She has previously served on the Council of Economic Advisers under former president Barack Obama.
The Trump administration has pursued allegations of mortgage fraud against high-profile Democrats who are seen as political adversaries of the president.
By AFP
August 26, 2025
The Federal Reserve is expected to hold interest rates steady for a fifth straight meeting despite President Donald Trump's pressure to cut levels. — © AFP Mohd RASFAN
Beiyi SEOW
Federal Reserve Governor Lisa Cook rejected US President Donald Trump’s unprecedented bid to oust her on Tuesday, saying he had no legal authority for such an intervention against a member of the independent US central bank.
After calling for her resignation last week, Trump posted a letter on Monday evening to his Truth Social platform purporting to have fired Cook “effective immediately.”
The decision cited allegations of false statements on her mortgage agreements, claiming “there is sufficient cause to remove you from your position.”
“I will not resign,” said Cook, the first Black woman to serve on the central bank’s board, in a statement shared with AFP by her attorney Abbe Lowell.
“President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so,” she added.
Lowell pledged to “take whatever actions are needed to prevent his (Trump’s) attempted illegal action.”
The potential legal dispute would be the latest test of presidential powers under Trump’s new term, with the 79-year-old Republican — backed by loyalists throughout the government — forcefully moving to exert executive authority.
The Supreme Court’s conservative majority recently allowed Trump to fire members of other independent government boards, but notably created a carveout for the Federal Reserve in its ruling.
Federal law says that Fed officials can only be removed for “cause,” which could be interpreted to mean malfeasance or dereliction of duty.
After calling for her resignation last week, Trump posted a letter to his Truth Social platform purporting to have fired Cook ‘effective immediately’ – Copyright AFP/File SAUL LOEB, ANDREW CABALLERO-REYNOLDS
In his announcement that Cook would be removed, Trump pointed to a criminal referral dated August 15 from the Federal Housing Finance Agency’s director — a staunch ally of Trump — to the US attorney general.
The referral, Trump said, provided “sufficient reason” to believe that Cook might have made “false statements” on one or more mortgage agreements.
One of the alleged false statements was that Cook had claimed two primary residences, one in Michigan and another in Georgia.
Cook has not been charged with a crime and the alleged false statements occurred before she was in her current position.
Earlier this month, Cook said in a statement that she had “no intention of being bullied to step down,” but would take questions about her financial history seriously.
The Fed did not immediately respond to media queries.
In his letter Monday, Trump said: “At a minimum, the conduct at issue exhibits the sort of gross negligence in financial transactions that calls into question your competence and trustworthiness as a financial regulator.”
– Court challenge? –
Senator Elizabeth Warren, the top Democrat on the Senate Banking Committee, called Trump’s move “an authoritarian power grab that blatantly violates the Federal Reserve Act.”
She added in a statement that this “must be overturned in court.”
Trump has been ramping up pressure on the Fed this year, repeatedly criticizing its chief Jerome Powell for not lowering interest rates sooner despite benign inflation data.
Fed policymakers have been cautious in cutting rates as they monitor the effects of Trump’s tariffs on prices.
Trump has made no secret of his disdain for Powell, whom he has called a “numbskull” and “moron.”
Since its last reduction in December, the Fed has held rates at a range between 4.25 percent and 4.50 percent this year. Powell on Friday opened the door to lowering levels at the bank’s upcoming policy meeting in September.
Trump also previously suggested that what he called an overly costly renovation of the Fed’s headquarters could be a reason to oust Powell, before backing off the threat.
The president has picked Stephen Miran, the leader of his White House economic panel, to fill a recently vacated seat on the Federal Reserve board.
Cook took office as a Fed governor in May 2022 and was reappointed to the board in September 2023. She was sworn in later that same month for a term ending in 2038.
She has previously served on the Council of Economic Advisers under former president Barack Obama.
The Trump administration has pursued allegations of mortgage fraud against high-profile Democrats who are seen as political adversaries of the president.
Who is Lisa Cook, the Fed governor Trump seeks to fire?
By AFP
August 26, 2025
US Federal Reserve Governor Lisa Cook plans to contest President Donald Trump's attempt to remove her from her position at the central bank - Copyright AFP Gregory WALTON
Lisa Cook, the first Black woman to serve on the powerful Federal Reserve Board of Governors, has become US President Donald Trump’s latest target as he ramped up pressure on the central bank.
Cook was one of former president Joe Biden’s choices to fill open seats on the Fed board — a seven-member body guiding US monetary policy — and she took office as a Fed governor in May 2022.
The daughter of a Baptist chaplain and a professor of nursing, Cook bears physical scars from racism after she was attacked as a young child while involved in an effort to integrate racially segregated schools in the state of Georgia.
Prior to joining the Fed, she dedicated much of her research as an adult to previously unmeasured economic scars of discrimination on the productive capacity of the world’s largest economy.
While the Fed is independent from the White House, Trump has repeatedly called on the central bank to slash interest rates this year and lower borrowing costs.
This separation from politics could come under threat as Trump intensifies pressure on the bank. On Monday evening, he published a letter on his Truth Social platform, saying that he was removing Cook from her position immediately over claims of mortgage fraud.
But Cook has rejected Trump’s attempt to oust her, saying that he had no authority to do so and that she would not resign. Her lawyer said Tuesday they would file a lawsuit to challenge Trump’s announcement.
Before becoming a Fed governor, Cook was a professor of economics and international relations at Michigan State University. She earned an economics degree from Oxford University and a doctorate from the University of California, Berkeley.
In 2023, she was reappointed to the Fed’s board and sworn in for a term ending 2038.
Since joining the central bank, Cook has voted with Fed Chair Jerome Powell in policy decisions, like most of her colleagues.
These included instances when the bank started cutting interest rates and when it decided to put a pause on rate reductions.
She has been described as a “dove” at times, a term referring to someone who tends to support lower rates.
But in a June speech she warned of longer-term risks surrounding inflation and said that the Fed’s cautious approach to rate cuts was well positioned to respond to developments.
Cook’s opponents have in the past questioned her qualifications and said she doesn’t have the background for the job, criticisms that her supporters say are fueled by her race.
“I have been the target of anonymous and untrue attacks on my academic record,” Cook told lawmakers in 2022, citing as qualifications her doctorate degree and specialties in international and macroeconomics.
Other board members, including Powell, are not trained economists, and Cook has researched inequality in the labor market.
She speaks five languages, including Russian, and also specializes in international development economics, having worked on topics such as Rwanda’s recovery following the 1994 genocide.
Cook grew up in an area of the United States where public swimming pools were destroyed rather than allowed to be integrated, and was one of the first Black children to attend her previously segregated school.
She has studied lynchings and patents issued to Black entrepreneurs, arguing that discrimination has held back the entire society, not just the direct victims of the injustice.
By AFP
August 26, 2025
US Federal Reserve Governor Lisa Cook plans to contest President Donald Trump's attempt to remove her from her position at the central bank - Copyright AFP Gregory WALTON
Lisa Cook, the first Black woman to serve on the powerful Federal Reserve Board of Governors, has become US President Donald Trump’s latest target as he ramped up pressure on the central bank.
Cook was one of former president Joe Biden’s choices to fill open seats on the Fed board — a seven-member body guiding US monetary policy — and she took office as a Fed governor in May 2022.
The daughter of a Baptist chaplain and a professor of nursing, Cook bears physical scars from racism after she was attacked as a young child while involved in an effort to integrate racially segregated schools in the state of Georgia.
Prior to joining the Fed, she dedicated much of her research as an adult to previously unmeasured economic scars of discrimination on the productive capacity of the world’s largest economy.
While the Fed is independent from the White House, Trump has repeatedly called on the central bank to slash interest rates this year and lower borrowing costs.
This separation from politics could come under threat as Trump intensifies pressure on the bank. On Monday evening, he published a letter on his Truth Social platform, saying that he was removing Cook from her position immediately over claims of mortgage fraud.
But Cook has rejected Trump’s attempt to oust her, saying that he had no authority to do so and that she would not resign. Her lawyer said Tuesday they would file a lawsuit to challenge Trump’s announcement.
Before becoming a Fed governor, Cook was a professor of economics and international relations at Michigan State University. She earned an economics degree from Oxford University and a doctorate from the University of California, Berkeley.
In 2023, she was reappointed to the Fed’s board and sworn in for a term ending 2038.
Since joining the central bank, Cook has voted with Fed Chair Jerome Powell in policy decisions, like most of her colleagues.
These included instances when the bank started cutting interest rates and when it decided to put a pause on rate reductions.
She has been described as a “dove” at times, a term referring to someone who tends to support lower rates.
But in a June speech she warned of longer-term risks surrounding inflation and said that the Fed’s cautious approach to rate cuts was well positioned to respond to developments.
Cook’s opponents have in the past questioned her qualifications and said she doesn’t have the background for the job, criticisms that her supporters say are fueled by her race.
“I have been the target of anonymous and untrue attacks on my academic record,” Cook told lawmakers in 2022, citing as qualifications her doctorate degree and specialties in international and macroeconomics.
Other board members, including Powell, are not trained economists, and Cook has researched inequality in the labor market.
She speaks five languages, including Russian, and also specializes in international development economics, having worked on topics such as Rwanda’s recovery following the 1994 genocide.
Cook grew up in an area of the United States where public swimming pools were destroyed rather than allowed to be integrated, and was one of the first Black children to attend her previously segregated school.
She has studied lynchings and patents issued to Black entrepreneurs, arguing that discrimination has held back the entire society, not just the direct victims of the injustice.
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