Trump renews effort to oust Cook from Federal Reserve Board

August 11, 2026 - 17:55

President Trump has revived his push to remove Federal Reserve Governor Lisa D. Cook from her position, sending a direct letter to the Biden-era appointee. The move signals a fresh confrontation between the White House and the central bank over its leadership and policy direction. Cook, an economist who has served on the board since 2022, has been a consistent voice for maintaining independent monetary policy, a stance that has put her at odds with the administration's calls for lower interest rates.

The letter, which was not made public in full, is said to reiterate Trump's earlier demands for her resignation. This is not the first time the president has targeted Cook. He previously attempted to remove her during his first term, but that effort stalled. Now, with a new political landscape in Washington, the administration appears more determined to reshape the Fed's board to align with its economic agenda.

Legal experts note that the president's authority to fire a Fed governor is limited. The Federal Reserve Act allows removal only for cause, such as inefficiency or neglect of duty, not for policy disagreements. Cook has shown no signs of stepping down voluntarily, and her term does not expire until 2024. The standoff raises questions about the long-term independence of the Fed, a cornerstone of U.S. economic stability. Investors and economists are watching closely, as any perceived political interference could unsettle markets. For now, Cook remains in her seat, and the battle over the Fed's future appears far from over.