President Donald Trump filed an extraordinary petition with the U.S. Supreme Court on Thursday requesting the removal of Federal Reserve Governor Lisa Cook, one day after the central bank decided to cut interest rates for the first time in several months.
The unprecedented move has put the spotlight on the independence of the Federal Reserve, a matter of critical importance for the U.S. economy. Trump argues that Cook provided inaccurate information regarding her personal interests and refused to clarify apparent misinterpretations.
If successful, this would be the first time in the 111-year history of the Federal Reserve that a governor is removed by a sitting president.
The Federal Reserve had lowered its key interest rate on Wednesday for the first time since December, signaling the possibility of further cuts later this year. Trump has been highly critical of Fed Chair Jerome Powell for maintaining high rates, and analysts suggest that the targeting of Cook may be intended to pressure the agency to act.
In the petition, the administration stated:
“The role of the Federal Reserve Board in the U.S. economy is extremely important, and it is essential that a member with ethical compromises not continue to exercise their substantial powers. Simply put, the president may determine that Americans’ interest rates should not be set by a governor who appears to have misrepresented key facts and refuses to clarify misunderstandings.”
This development is expected to spark major legal and political debates, challenging the 111-year tradition of central bank independence and placing the Supreme Court at the center of a case with significant economic implications.
