#TrumpFiresFedGovernorCook President Donald Trump announced on August 25, 2025, that he was firing Federal Reserve Governor Lisa Cook, citing alleged mortgage fraud as legal justification. However, this action is historically unprecedented and highly questioned from a legal standpoint.

The Federal Reserve clarified that governors serve 14-year terms and can only be removed "for cause." They assessed that Cook remains in her position and that they will adhere to any judicial resolution.

Cook responded by denying the accusations and announced that she would file a lawsuit to challenge the dismissal and continue in her role.

The case has generated strong criticism: Democratic lawmakers describe it as an authoritarian attack on the independence of the Fed, and analysts foresee that it could reach the Supreme Court, redefining the limits of presidential power.

Markets reacted with slight nervousness: Treasury bond yields rose, the dollar fell, and safe-haven assets like gold gained appeal.

Experts warn that the politicization of the central bank could undermine its credibility and unleash inflationary pressures, affecting interest rates and economic stability in the medium to long term.

Possible implications

Aspect Potential Impact

Independence of the Fed Risk of erosion of one of the macroeconomic pillars: a monetary policy free from political pressures.

Legal framework at stake The decision will set a historic precedent regarding the extent of presidential power over the Fed.

Economic risks Increases the perception of political risk in the U.S., which could raise financing costs and inflationary pressure.