Trump Defends Fed Independence By Ordering It To Obey
President Donald Trump renewed his campaign to protect the Federal Reserve from political interference Friday by again attempting to remove Governor Lisa Cook for declining to accept his political interference. The White House gave Cook 21 days to answer mortgage-fraud allegations involving two homes she reportedly listed as primary residences in 2021, claims she denies and which predate her appointment. The deadline followed a Supreme Court decision allowing Cook to remain in office while her lawsuit proceeds, confirming that due process consists of writing “You’re fired” on government stationery and waiting three weeks.
Trump said the removal effort was necessary to preserve the central bank’s sacred autonomy. “Nobody respects an independent Federal Reserve more than I do, and they should be completely free to make any decision I approve, at the time I demand it, without political pressure from anyone except the president,” Trump said. Administration officials said the president’s instructions were not political because they came from Donald Trump, whose preferences are classified as economic data whenever markets require reassurance.
Cook’s attorneys, Abbe Lowell and Norm Eisen, called the allegations baseless and accused Trump of trying to compromise central-bank independence. The White House rejected the criticism, explaining that independence does not permit Fed governors to develop independent opinions, remain independently employed or interpret their statutory protections without first consulting the president’s social-media account. Officials added that Cook would receive a fair hearing before the administration formally discovers that Trump was correct from the beginning.
Federal Reserve Chair Jerome Powell has not announced whether the central bank will adopt the administration’s proposed inflation target, defined as whatever number permits Trump to declare victory before lunch. Markets were expected to welcome the stability created by placing interest-rate policy under the emotional supervision of the president, with future decisions guided by mortgage payments, cable-news segments and whether anyone has recently called the economy “Trump’s economy” in a flattering tone. Cook may submit evidence by the deadline, after which officials will carefully review it before issuing the conclusion they prepared in advance. The Federal Reserve is now fully independent because it answers to Donald Trump.
* None of the quotes in this article were spoken by an actual person. More info.