Allegations and the Federal Reserve Act: A Legal Challenge

President Donald Trump is ramping up his attacks on the Federal Reserve.

On Monday, the president posted orders on Truth Social to remove Federal Reserve governor Lisa Cook – effective immediately. The president claims she committed mortgage fraud, an allegation first raised by a Trump loyalist and housing official.

Cook, who was appointed by former President Joe Biden, responded in a statement saying that Trump has no authority to remove her and that she will continue her duties. Cook has not been charged with a crime.

It’s an unprecedented move that puts into question the independence of the central bank. So, what comes next and what does this mean for the Fed?

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