Economist Podcasts Fed alert: can Trump fire a governor?
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Aug 27, 2025 
Rachna Shambhog, a business affairs editor at The Economist, joins Kinley Salmon, a Latin America correspondent, and Tom Nuttall, the chief Germany correspondent, to discuss pressing global issues. They analyze Trump's controversial bid to dismiss a Federal Reserve governor and its potential threat to the Fed's independence. The conversation also delves into Uruguay's groundbreaking move towards legalizing assisted dying and the thriving culture of shooting clubs in Germany, touching on community engagement and historical significance.
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White House Challenge To Fed Independence
- The Trump administration publicly threatened to remove Fed governor Lisa Cook over alleged mortgage misstatements.
- That move challenges the Fed's long-standing independence and will likely be decided in the courts.
Allegations As A Pretext To Influence Rates
- The allegation against Lisa Cook gives the administration a pretext to influence Fed composition and push for lower rates.
- Political pressure risks eroding market confidence in the Fed's commitment to low inflation over time.
Watch Senate And Powell For Near-Term Checks
- Senate confirmation still constrains any presidential nominee to the Fed, so expect scrutiny of replacements.
- Watch Senate votes and Powell's continuing term as governor for near-term checks on politicisation.