By Mildred Robertson
Trump says he's firing Federal Reserve Gov. Lisa Cook, citing his administration’s allegations of mortgage fraud against her. Cook, the first Black woman to serve on the Federal Reserve Board, responded by saying that Trump has no authority to fire her and she would continue to carry out her duties. Wealthy businessman Bill Pulte, who is Trump’s Federal Housing Finance Agency Director, alleged that Cook had committed mortgage fraud. While she has not been formally prosecuted or charged, Trump made the bold, and possibly unconstitutional, decision to try to fire Cook.
The
decision to go after Cook is likely fueled by Trump’s desire to control the
Federal Reserve. To date, his primary target at the Federal Reserve, Jerome
Powell, appears to be more difficult to take down. Powell heads a seven-member board
that serves 14-year terms. The board is
nominated by the President and confirmed by the Senate. They oversee the
Federal Reserve and help set monetary policy.
Trump
has come into conflict with the board because he wants interest rates down now.
He has attempted to strong-arm Federal Reserve Chair Powell into lowering the
rates for months now. Powell has yet to comply.
That’s where Pulte comes in. Trump's feeble attempt to fire Powell seems stymied by the fact that the Federal Reserve Act of 1913 states that the Federal Reserve Board of Governors can only be removed by the president “for cause.” Trump tried unsuccessfully to base dismissal for cause against Powell on cost overruns on the central bank’s $2.5 billion headquarters renovation. Having failed at that, alleging fraud against Cook, the only African American woman on the board, may allow him to achieve his desired results.
As Trump continues his revenge tour, Cook, along with James and Schiff, all deny wrongdoing, stating that the prosecutions are politically motivated. This is not hard to believe, in that Trump has vowed that his second term would be one of retribution against all who have opposed him.