Federal Reserve Governance and Political Influence - The political independence of the Fed is jeopardized when board members are personally attacked by the president [1] - Trump's ability to fill board seats impacts actions like adjusting the discount rate, which is decided by the board of governors [2] - The appointment of Lisa Cook's successor has long-term implications for regulatory and monetary policy, influencing decisions for over a decade [3] Potential Removal of a Board Member - The president can remove a member of the board of governors "for cause" under section 10.2% of the Federal Reserve Act [4] - The Department of Justice is investigating Lisa Cook for potential mortgage fraud, which could be a path for her removal [3][6] - An internal investigation by the Federal Reserve, including an inspector general examination of financial disclosures, is expected [7] - The board of governors has less power to remove its members compared to Federal Reserve regional bank presidents [8]
Trump's DOJ Targets Fed Governor Lisa Cook
Bloomberg Television·2025-08-21 18:20