Trump Gives Fed Governor Lisa Cook The “Apprentice” Treatment (Cue The Legal Circus…)

We're one Supreme Court decision away from Federal Reserve meetings being sponsored by MyPillow…

Teflon Don’s reality show instincts never died…they just moved to Washington. On Monday night, the President dusted off his old catchphrase and slapped it on Fed Governor Lisa Cook: you’re fired.

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The charge, you ask? Mortgage fraud. Bill Pulte, the housing finance czar and Trump ally, accused Cook of claiming two different homes as “primary residences” within two weeks back in 2021. Trump took the baton, posted a letter online, and declared she was gone…citing the Fed Act of 1913, the Constitution, and whatever else he could fit between ALL CAPS. Cook, for her part, said the move was illegal, that she’s not resigning, and lawyered up. Abbe Lowell (yes, that Lowell whose body count is quite impressive featuring: Bob Menendez, Ivanka Trump, and Hunter Biden), called Trump’s letter “flawed” and promised a courtroom brawl.

(Source: Wall Street Journal) 

Now, why is this a BFD? Because if Trump actually manages to boot Cook, he gets another open seat on the Fed board… and with it, more leverage to bend monetary policy toward his favorite playbook: cut rates, juice markets, win hearts of investors. 

Right now, two Trump appointees (see: Michelle Bowman and Christopher Waller), already sit on the board. Add Stephen Miran, a Trump economic adviser awaiting Senate confirmation, and suddenly the balance shifts. Cook’s seat would tilt the board even further toward Trump-aligned policy. Powell’s chairmanship also expires in May, meaning the President could re-stack the Fed in his image by the middle of next year.

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As for the markets on the matter, it took note but didn’t necessarily panic. Translation: No CSX-level meltdowns this ain’t. Why? Because the real impact isn’t in today’s prices… it’s in what comes next. If Cook digs in, this goes to the courts. The Fed Act says governors can be removed “for cause,” but nobody’s ever tested what that means. Legal scholars are already whispering that this could end up in front of the Supreme Court, which has a track record of clipping job protections for independent agencies.

Meaning, f*ckle up buckleheads, because we are about to witness months of uncertainty over who actually controls the Fed. And don’t forget, Trump has a hobby of torching Jerome Powell, threatening to fire him, and mocking the Fed’s HQ renovation bills. Whereas, Lisa Cook might just be the appetizer. 

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With that said, on paper, nothing changes at the Fed as of now.  Policy is still Powell’s show, and Cook usually votes with the consensus. But the signal here is loud: Trump wants his people in, and anyone tied to Biden out. If he gets his way, the Fed board tilts more dovish, faster. That means more pressure for earlier rate cuts… but because politics does. And honestly? I’m kinda here for it. Until next time, friends… 

At the time of publishing, Stocks.News does not hold positions in companies mentioned in the article.