Lisa Cook Fights Back as Trump Revives Push to Oust Her From Fed Board
- Fed Governor Lisa Cook responded forcefully to a new administration letter giving her 21 days to contest mortgage-fraud allegations, the latest escalation in Trump's bid to remove her (NYT).
- The Supreme Court ruled in June that the president cannot fire a Fed governor without the 'for cause' process under the Federal Reserve Act; the litigation is now back in play and could shape the boundary of executive power over monetary policy.
- A successful removal would let Trump reshape the seven-member Board, with implications for the rate path, Fed independence, and Treasury yields heading into Jackson Hole.