Experts: Trump Lacks Authority to Dismiss Federal Reserve Governor
(MENAFN) In an unprecedented and contentious move, US President Donald Trump announced the immediate removal of Federal Reserve Governor Lisa Cook, citing allegations of mortgage fraud. The dismissal, communicated in a letter posted Monday on Truth Social—the social media platform owned by Trump—accused Cook of signing conflicting mortgage documents for properties in Michigan and Georgia.
Trump’s letter stated bluntly, “You are hereby removed from your position on the Board of Governors of the Federal Reserve, effective immediately.” He added, “It is inconceivable that you were not aware of your first commitment when making the second,” referencing a criminal referral that reportedly underpins the action.
This marks the first time a US president has sought to fire a sitting Federal Reserve governor, igniting intense debate about the central bank’s independence and allegations of Trump’s “abuse of power.”
Jeffrey Frankel, professor of capital formation and growth at the Harvard Kennedy School, told media that Trump lacks the authority to dismiss Cook. “The independence of the Fed was even confirmed recently by the Supreme Court,” Frankel noted. He further criticized Trump’s approach: “It seems obvious that Trump is throwing scurrilous charges at anyone whom he considers to be an obstacle to his personal interests.”
Charles Calomiris, co-director of the Institute for Research in Economics in Washington, echoed concerns that the move is widely viewed as an assault on Fed independence. “And judging from the recent nomination, Trump does want to appoint loyalists to the Board,” Calomiris said. He pointed out that “The Senate can block appointments to the Fed Board that are unqualified Trump loyalists.”
“But will they? It’s not clear that there are enough Senate Republicans with the courage to stop that. But there may be,” he added.
Emphasizing the constitutional basis, Calomiris pointed out that authority over monetary policy lies in Article I, Section 8 of the US Constitution, granting control to Congress rather than the Executive branch. He added, “This is a moment of truth where we will see whether the Senate will choose to fulfill its Constitutional responsibility.”
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
