The Exchange Trump moves to fire Fed Governor Lisa Cook 8/26/25
Aug 26, 2025
In this discussion, Steve Leisman, a CNBC reporter focused on the legal ramifications of President Trump's move to dismiss Federal Reserve Governor Lisa Cook, shares insights on the implications for the Fed's independence. Joining him is Rebecca Kelly Slaughter, an FTC Commissioner who has faced similar threats, detailing her own legal struggles. Together, they explore the fallout of potential presidential overreach, the economic uncertainties affecting consumer confidence, and what these developments mean for market stability.
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Allegations Versus Legal Findings
- President Trump announced he fired Fed Governor Lisa Cook citing alleged mortgage fraud, but no charges or factual rulings exist yet.
- Steve Leisman warns this move may be politically motivated and could shift control of the Fed if Cook is replaced.
FTC Firing And Court Rollercoaster
- FTC Commissioner Rebecca Slaughter recounted being fired in March and returning after a district court ruled the firing illegal.
- Her reinstatement was short-lived because an appeals court stayed that decision pending appeal.
Manufactured Cause Undermines Independence
- Slaughter argues manufactured cause threatens long-standing statutory protections for independent agencies.
- Losing those protections risks market stability and undermines regulators' ability to provide guardrails.