In a sharply worded editorial published Tuesday, The Wall Street Journal (WSJ) decried President Donald Trump’s attempt to fire Federal Reserve Governor Lisa Cook as a thinly veiled power grab that threatens the independence of America’s central bank.
The WSJ's editors warned that a “central bank with even a semblance of independence may be the casualty” of such politically motivated interference.
According to the editorial, Cook’s dismissal represents a calculated escalation. It noted that Trump targeted Cook after allegations of mortgage fraud surfaced online, an action that effectively uses those accusations as a pretext, to establish “sufficient reason” for removal “for cause,” even though the validity of those claims remains unproven and absent due process.
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The paper argued this sets a dangerous precedent where firing becomes a weapon against non‑compliant Fed officials.
The editorial further read: "The criminal referral is a threat to other Fed governors: Cut rates, or else. It is also a pretext to fire Ms. Cook 'for cause.'"
The Fed itself issued a statement defending the fixed terms and "for cause" protections for its governors, calling those safeguards vital for ensuring monetary policy remains based on data and long-term stability, not political pressure.
Meanwhile, markets have been unsettled. Analysts warn that this unprecedented interference may severely undermine credibility in the institution, and potentially destabilize broader economic confidence.
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The WSJ highlighted the high-stakes legal showdown ahead. Cook has pledged to challenge her removal in court, a fight that could ultimately compel the Supreme Court to clarify the ambiguous legal definition of “for cause.”
A decision favoring Trump, the piece noted, would effectively weaken the Fed’s autonomy — giving the president the power to remove board members at will and reshape the central bank to his political advantage.
"Mr. Trump is all about short-term tactics and personal political advantage. Institutional integrity bores him. But if he succeeds in taking over the Fed, he and Republicans will own the results and whatever inflation returns," the Journal's editorial board wrote.
Click here to read the WSJ's full editorial (subscription required).
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