Trump Fires Fed Governor Lisa Cook: Central Bank Independence at Stake!
A surprising decision came from the White House. President Donald Trump fired Federal Reserve Governor Lisa Cook, a rare move that immediately triggered turmoil in global markets.
This dismissal raises a major question: does a US president have the right to fire a Fed official?
Why Is This Move Controversial?
By law, Fed governors have 14-year terms designed to protect the independence of monetary policy from political influence. The Federal Reserve Act limits executive intervention, so the president can only dismiss a governor "for cause," or for legitimate reasons, such as violations of law or abuse of office.
Such a dismissal is almost unprecedented in modern US history. If Trump used political reasons, it could trigger a constitutional crisis and legal challenges.
Lisa Cook's dismissal joins a long list of independent officials Trump has removed:
James Comey – FBI Director (2017), related to the Russia election investigation.
Andrew McCabe – FBI Deputy Director (2018), internal controversy.
Michael Atkinson – Inspector General of Intelligence (2020), related to the Ukraine whistleblower report.
Steve Linick – Inspector General of the State Department (2020), is investigating Pompeo.
Chris Krebs – Head of CISA (2020), fired after denying claims of election fraud.
These steps sparked widespread criticism that Trump frequently interfered with independent agencies for political gain.
Future Implications
Investor confidence is shaken, and central bank independence is again being questioned.
Safe-haven sentiment is strengthening: gold and silver have the potential for further bullish momentum.
The US dollar is under pressure, while stock and oil volatility is increasing.
Investors are now awaiting clarification from the White House and Congress's reaction, which could determine market direction in the coming weeks.
Source: Newsmaker.id
