Displaying items by tag: Federal Reserve

The conflict between Federal Reserve governor Lisa Cook and Donald Trump represents a profound clash over institutional independence and executive authority. Trump says he has dismissed Cook, alleging mortgage fraud, but her attorney insists the president lacks the power to remove a governor in this way. According to the Federal Reserve Act, governors should serve a fourteen-year term and may only be removed ‘for cause’, but what qualifies as ‘cause’ is unclear. Trump’s move follows similar attacks against other prominent Democrats, raising concerns about politicising independent regulators. Legal scholars note that recent supreme court rulings granted broader executive authority over some agencies, but not over the Federal Reserve. Cook, refusing to resign, has vowed to challenge Trump’s actions in court. The outcome of this struggle could potentially set a historic precedent. In a separate development, Trump has fired the head of the Centre for Disease Control, Susan Monarez, only a month after she was appointed: see

According to an anonymous official, the White House is searching for a new Pentagon chief to replace Pete Hegseth, after claims that he shared classified military details via the Signal app with his wife, brother, and lawyer, potentially jeopardising operations in Yemen. This follows his error in March when he mistakenly included a journalist in a similar chat. Donald Trump and press secretary Karoline Leavitt have publicly defended Hegseth, calling the uproar a media smear, and Hegseth has denied wrongdoing, blaming disgruntled ex-employees. Four senior Pentagon advisers have recently departed; three of them were forcibly removed for leaking information to the press, a charge they have denied. Senators have criticised both Hegseth’s conduct and Trump’s judgment in appointing someone lacking high-level leadership experience. Meanwhile, in another controversy, Trump has stated that he has no intention of firing Jerome Powell, chair of the Federal Reserve, even after calling him a ’major loser’ for his refusal to cut interest rates. See