Why does Trump want to fire Fed governor Cook?
Donald Trump is upping the pressure on the US Federal Reserve, which is supposed to be independent of government influence. The president has now announced the immediate dismissal of Lisa Cook from the Board of Governors. The move is legally controversial and unprecedented in the history of the central bank. Europe's press takes a closer look.
All about midterm votes
The US president is already in campaign mode, La Repubblica concludes:
“Trump is aiming to secure a significant cut in interest rates to boost the economy ahead of the midterm elections in November 2026. ... The next meeting of the Fed's board is scheduled for 18 September, and Powell has shown tentative signs of being open to an interest rate cut. But Trump has bigger plans. Also because he wants to boost consumption in time for voters to perceive an economic improvement ahead of the midterm elections that will partially renew Congress next autumn, when a handful of seats could decide the composition of the House.”
Loss of trust threatens system collapse
Trends-Tendances fears a dangerous chain reaction:
“Trump wants to show strength, but in reality he is sawing at the branch on which America's strength hangs: confidence. Because as soon as international investors start to doubt the Fed's figures and independence, the dollar itself will be weakened. And the dollar is not just a currency, it is the software that drives the global economy. If this software crashes, the whole planet will falter. This is a cruel paradox: by trying to gain control of the numbers Trump is making them suspect. By trying to control the Fed he is undermining its credibility. And in doing so, he is presenting the whole world with the image of an America that no longer plays by transparent rules, but with marked cards.”
The White House wants full control
ABC is alarmed:
“This undermines the independence of the Fed. Cook, the first black woman to be appointed to its Board of Governors, opposed the dismissal, saying the president had no legal authority to fire her 'without cause'. Trump, who has been calling for the resignation of Fed Chairman Jerome Powell since his return to the White House, is trying to gain control of the board in order to force an interest rate cut. Following the resignation of Adriana Kugler, he has already succeeded in appointing his economic adviser Stephen Miran. If he manages to get Cook to resign, Trumpism will take control of the Fed.”