Federal Reserve Governor Lisa Cook delivered her first public remarks since former President Donald Trump announced her dismissal, assuring that interest rates remain equipped to tackle persistent inflation. Speaking at an event in Washington, Cook emphasized she will continue serving, as the legality of Trump’s attempted firing is being reviewed by the Supreme Court. She became the first member in the central bank’s history to face an attempted presidential removal, a move that has sparked fierce debate about the Federal Reserve’s independence.
Fed’s Lisa Cook Responds to Trump Removal Attempt in Public Speech
Cook’s Economic Assessment and Legal Fight
Lisa Cook said current monetary policy is “well-positioned” for ongoing inflation and recognized cooling, though still resilient, labor markets. She referenced her recent votes to cut the Federal Reserve’s benchmark rate, citing increased risk to employment versus inflation. Cook thanked supporters for their encouragement amid her legal battle and declined to address specifics on the case directly, calling her service “the honor of my life.” The lawsuit—filed after Trump cited unproven mortgage fraud allegations—will be heard by the Supreme Court in January. Cook is supported by a federal injunction allowing her to remain on the Board of Governors for now.
Unprecedented Showdown on Central Bank Independence
Trump’s action represents the first time a U.S. president has tried to fire a sitting Fed governor. Lisa Cook and her legal team argue in federal court that the president lacks such authority, warning this move undermines the central bank’s statutory independence and risks politicizing economic policy. Experts say the case could set a precedent for future White House attempts to reshape the Federal Reserve’s leadership and approach.
What’s Next for Cook and the Fed?
Until the Supreme Court rules, Cook remains in her position and active in setting monetary policy. The Fed’s decisions on rates, inflation, and employment will be closely watched, with Cook maintaining a cautious but supportive voice for measured stimulus if economic risks mount. The aftermath of Trump’s firing attempt continues to reverberate across Washington and financial markets as the case unfolds.