Trump Fires Fed Gov Cook, She Vows to Stay

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4 days ago

Above: Jerome Powell, chairman of the U.S. Federal Reserve, with Lisa Cook in Washington, DC, on June 25, 2025. Image copyright: Al Drago/Bloomberg/Getty Images

story last updated 2 days ago

The Spin

Republican narrative

Cook's removal is justified given the serious allegations of mortgage fraud that undermine public trust in the Federal Reserve. The Fed has tremendous responsibility for setting interest rates and regulating banks, which requires complete honesty from its members.

Donald Trump on Truth Social Breitbart

Democratic narrative

This firing represents an authoritarian power grab that blatantly violates the Federal Reserve Act and seriously threatens the central bank's independence. Trump clearly lacks the proper legal authority to remove Cook, especially considering she hasn't been charged with any crime or misconduct whatsoever.

Australian Financial Review X

Metaculus Prediction

There's a 52% chance that the Federal Reserve will set a target policy rate that is negative by 2050, according to the Metaculus prediction community.