Odd Lots Lev Menand on Trump's Attempt to Fire the Fed's Lisa Cook
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Aug 26, 2025 Lev Menand, a Columbia Law Professor and author of 'The Fed Unbound', discusses President Trump's controversial attempt to fire Fed Governor Lisa Cook, which raises alarms about central bank independence. He explains the legal complexities of 'for cause' dismissals and argues that unproven allegations shouldn't justify such actions. The conversation delves into how this move could reshape the relationship between presidential power and independent agencies, highlighting the risks of political influence on monetary policy and the implications for market dynamics.
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Unprecedented Fed Firing Risk
- No president has fired a Federal Reserve Board member since 1913, so this is historically unprecedented.
- Lev Menand says we're in uncharted waters legally and constitutionally over removal of Fed officials.
What 'For Cause' Usually Means
- 'For cause' removal typically means inefficiency, neglect of duty, or malfeasance tied to job performance.
- Menand emphasizes private misconduct allegations generally do not qualify as cause for removal.
Mortgage Applications Cited Against Cook
- The administration points to two mortgage applications where Lisa Cook listed properties as primary residences.
- Menand notes allegations alone cannot substitute for a due-process determination of fraud.
