By John Q. Hosedrinker 
In an unprecedented move, former President Donald Trump announced the firing of Federal Reserve Governor Lisa Cook, citing allegations of mortgage fraud as the cause. This action marks the first time a president has fired a central bank governor in the Fed’s history, raising questions about the legality and implications of such a decision. The dismissal has sparked concern over the Fed’s independence, as Trump has previously criticized the central bank’s interest rate decisions, potentially aiming to exert political influence over monetary policy. The firing’s legality is uncertain, as the law only allows removal “for cause”, a term whose boundaries are undefined, but the move has already impacted the US dollar index, which dropped in value following the announcement.
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Trump says he’s fired Fed governor Lisa Cook, escalating his battle against the central bank, and it feels like we’re entering some sort of bizarre political twilight zone. First off, let’s be clear: nothing has been proven against Lisa Cook, so the accusations are floating around.
The timing of all this is interesting, considering the Supreme Court’s recent ruling. They stated that, unlike other independent agencies, the president doesn’t have the power to fire Federal Reserve board members. This ruling was pretty straightforward. In layman’s terms, this whole situation is a mess, and it is all a sign of a bad future to come.
Given that SCOTUS has said Trump can’t fire her, it’s natural to assume he’s going to say he can, because what’s really illegal these days? Apparently, he’s simply purging government of anyone that doesn’t agree with him.
Let’s not forget, there’s also the claim that Lisa Cook is somehow guilty of mortgage fraud. What this means is she is being accused of listing one place as her primary residence, and then, shortly after, taking out a mortgage on another property also listing it as her primary residence. It’s a crime. However, it needs to be proven it was intentional and not a mistake. Considering Trump’s own history with property valuation, this feels especially hypocritical, with him overvaluing property to get better loans and undervaluing properties to pay less taxes.
The irony is thick; Trump is notorious for hating smart Black women. Plus, he’s a convicted felon and fraudster, and it’s a pretty rich rationale coming from him.
And let’s not forget the big picture. The US economy is teetering on the edge, propped up by what seems like a very fragile concept. It doesn’t take much to send things over the edge.
So, what happens next? Well, Cook probably just shows up to work. She may get to sue and get paid, but is that a long-term solution?
The financial markets will react, and they are already reacting poorly to his actions. If Trump wants falling unemployment numbers, why should he want to lower interest rates? And he is firing her after hours, to add to the chaos.
It’s also worth noting that with Trump’s mentality, he only wants yes-men around. The entire situation stinks of political maneuvering and potentially, a deliberate attempt to destabilize the financial system.
The situation boils down to this: Cook is accused of wrongdoing, and Trump, who has his own history of questionable financial dealings, is using this as a power play. The legal standing is shaky, and the market is likely to face some rough waters.
The only hope you can have about the SCOTUS ruling against this is that this directly fucks with their money. The futures are down, and any news outlet should be reporting that an illegal action is illegal. The United States is circling the drain, and the reaction of most is just a shrug.
The core of the issue is that this is a blatant attempt to remove someone he doesn’t agree with. The fact that Lisa Cook is a Black woman cannot be ignored either. There are many that will be affected from this.
Meanwhile, it feels like the country is on a downward spiral. I’d love to see other countries start dumping US bonds and the market panic in response. Trump would change his tune in minutes.