In an unprecedented move in the 111 -year history of Fed, the President of the United States, Donald Trumpshe announced that Lisa Cook, the first African -American woman appointed a member of the Federal Bank’s Board of Directors (Fed), citing irregularities in acquiring mortgages.
Through his post on Truth Social on Monday, Trump announced: ‘I thought there is sufficient reason for your removal from your position’.In particular, she accused her of reporting real estate loan applications in Michigan and Georgia that both of her main residence.
Maybe the “official” reason was “irregularities” on mortgage loans, but in practice it is an unprecedented conflict that It brings to the forefront the independence of the US Central Bank.
Cook, whose term of office had been approved by 2038, reacted immediately: “There is no reason in accordance with the law, nor does the president have the power to dismiss me,” he said, clarifying that he would not resign. Her lawyer spoke of “illegal action” and announced a court battle.
The case began on August 20, when Trump had called on Lisa Cook to resign, on allegations by the Director of the Federal Housing and Funding (FHFA), William Pulte -also appointed by Trump -that Cook said. The US Department of Justice has announced that it is investigating the case.
What is Lisa Cook
Prior to her Fed, Lisa Cook taught Economics and International Relations at the University of Michigan State. From 2018 to 2021, he led the US Economic Union Summer Education Program, and there was also Research partner at the National Bureau of Economic Research.
Previously, he had taught at the Kennedy School of Governance at Harvard University, where he was also Deputy Director of Research in Africa at the Center for International Development. He was also a fellow at Stanford University.
From 2011 to 2012, served as Senior Financial Counsel to the Council of Economic Experts of the President Barack Obamawhile in the period 2000–2001 he worked as a senior consultant on funding and development issues at the US Department of Finance.
Cook studied Philosophy at Spelman College, while with a Marshall scholarship he received a second degree in Philosophy, Politics and Economy from the University of Oxford. She completed her doctorate at Economics at the University of California, Berkeley.
On May 23, 2022, he officially assumed duties as a member of the Fed Board of Directors for a term expired in January 2024.
Her term was renewed on September 8, 2023 and sworn on September 13, 2023 for a new term that was due to last until January 31, 2038.
Critical Questions After Cook’s Remove from Fed
Analysts point out that Cook’s removal is not exclusively for her face, but is part of Trump’s strategy to bend Fed’s resistance to her pressure on mass interest rates.
If the President replaces it with a person of his choice, he will secure a majority to the Fed Board of Directors, which will allow him to influence critical decisions – including renewing the term of 12 regional governors next February. Trump, after all, has not hesed in the past to even threaten the Fed President, Jerome Powell.
Whether an US president has the right to dismiss a Fed member remains controversial. The law stipulates that governors can be removed “only for a great reason”. However, the Supreme Court has in recent years limited the guarantees of term of office for other independent authorities, creating a gray zone.