The Journal. The Federal Reserve Under Siege
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Aug 26, 2025 The podcast dives into President Trump's controversial attempts to fire Federal Reserve governor Lisa Cook, raising questions about the independence of the central bank. It explores Trump's unique influence on monetary policy and the timing of his actions. Lisa Cook's groundbreaking role as the first Black woman on the board is examined, along with the tension between her and the president. Political pressures affecting the Fed's decision-making are discussed, highlighting the delicate balance between economic integrity and political influence.
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Unprecedented Threat To Fed Independence
- Trump's attempt to remove a Fed governor is historically unprecedented and puts the Fed's independence at risk.
- The move raises questions about whether the central bank can remain free from short-term political influence.
Lisa Cook's Background
- Lisa Cook is an academic economist who joined the Fed board a few years ago after a Biden nomination.
- She is the first Black woman to serve as a Federal Reserve governor.
Why The Fed's Structure Matters
- Fed governors and regional bank presidents share decision-making to insulate policy from politics.
- That structure exists to balance local perspectives with national monetary goals.