Federal Reserve Under Fire: Trust and Independence

What’s behind Donald Trump’s ongoing battle with the Federal Reserve? That’s the question on some analysts minds as the White House proposes staff shakeups at the historically independent central bank.

Trump has been attempting to fire Federal Reserve Governor Lisa Cook since Aug. 25. Cook was nominated by Joe Biden and confirmed by the Senate in 2022.

The administration is attempting to fire her based on allegations that she committed mortgage fraud before joining the Fed – that’s despite the fact that she hasn’t been convicted or charged with any crime.

On Tuesday night, a federal judge temporarily blocked the president from removing Cook from the Federal Reserve’s Board of Governors. She’ll continue to serve as she contests her dismissal.

The Fed has operated independently since its inception more than a century ago. How do the Trump administration’s proposed changes threaten that independence? And what effect could changes at the Fed have on the U.S. economy?

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