Fmr. Fed vice chair Alan Blinder: Independence of Fed is at stake in Lisa Cook firing attempts

Fed Independence & Political Influence - The independence of the Federal Reserve is at stake, potentially initiating a broader challenge to central bank autonomy [1][2] - The confirmation of Steven Moran, Trump's nominee, is a key event to watch, raising concerns about political influence on the Fed [2] - Appointing individuals who understand and respect the Fed's independence is crucial for maintaining its integrity [11] - Concerns exist that Trump appointees might take instructions from Trump, undermining the Fed's independence [7] - Removing Fed Governor Lisa Cook is viewed as a potentially illegal act and an assault on the Fed's independence [5][10] Monetary Policy & Economic Outlook - The president desires lower interest rates, potentially as low as 1%, which is considered unconventional by most economists [9] - The Fed may consider lowering interest rates at its next meeting [9] - The attempt to remove Cook and the new appointment are factors influencing the economic outlook [10][11] Investigations & Due Process - Investigations into Fed governors should be conducted fairly, without political motivation [6][12] - The investigation into Lisa Cook appears to be a politically motivated "fishing expedition" [13] - If evidence of wrongdoing, such as mortgage fraud, is found, it warrants investigation, regardless of central bank independence concerns [6][14]