TWEEDLE TIMES—President Trump moved to fire Fed Governor Lisa Cook for cause Monday, after the Fed governor allegedly claimed two properties as her primary residence to obtain cheaper mortgage terms as a private citizen.
Governor Cook said the President hand no authority to fire her.
“I will not resign,” she said. “I will continue to carry out my duties to help the American economy as I have been doing since 2022.”
The White House powerplay is expected to be challenged in court, but some financial experts fear the firing of Cook is one step closer to undermining the independence of the Fed.
And should President Trump succeed at installing a puppet arm of the White House at the Federal Reserve, the bond market would likely force long-term interest rates higher to account for the added political risks associated with U.S. Treasuries.
Regardless, the 10-Year Treasury remained anchored below 4.3% on the news of Cook’s firing.
