Donald Trump playing with fire today when it comes to the American economy. A once strong area for him politically that now sees some of his lowest approval marks ever in areas like inflation and tariffs, as well as a majority of Americans now expressing anxiety about how much things cost. So what does a politically vulnerable wannabe autocrat do? Well, he lunges for the steering wheel with an unprecedented and likely illegal attempt to fire a member of the independent Federal Reserve Board of Governors, Li ...

Tonight, one of the nation's most important economists is preparing to take Trump to court over his attempt to control the central bank. Cook now says she will sue the administration to keep her job. Last night, we broke this on this very show that Donald Trump claimed he removed Lisa Cook from her post. But the president does not have the authority to fire her without cause. Today, the president doubled down on very spurious allegations against Cook that he is using to justify his attempt to fire her. We w ...

Federal Reserve Independence & Economic Impact - The report highlights concerns over potential partisan interference with the Federal Reserve (Fed), crucial for managing economic risk and preventing financial crashes [3] - The report suggests that Trump's actions could lead to a "MAGA takeover" of the Fed, which is viewed negatively by the finance industry [3] - The report draws a parallel to Turkey, where an authoritarian ruler's interference with the central bank led to soaring inflation of 80% [16] - The report emphasizes the historical importance of the Fed's independence for a thriving free market, contrasting it with autocratic control seen in examples like Maoist China [19] Trump Administration Actions & Legal Challenges - The report focuses on President Trump's efforts to exert control over the Fed, including attempts to fire Lisa Cook, a member of the independent Federal Reserve [1][5] - The report mentions a Department of Justice (DOJ) investigation into Lisa Cook's mortgage application before she took office, viewed by financial experts as a pretext for consolidating power over the Fed [6] - The report indicates that Cook is challenging Trump's actions in court, arguing he lacks the authority to remove her [9][10] - The report suggests that the Supreme Court has previously acknowledged the Fed's protected and independent status, potentially leading to a court clash over Trump's actions [13] Broader Concerns about Autocratic Tendencies - The report raises concerns about Trump's broader efforts to undermine career independence across the federal government, drawing parallels to actions taken during the "Musk era" [11][12] - The report highlights Trump's attacks on Republican critics, including Chris Christie, and legal actions against Democrats, raising concerns about abuse of power [26] - The report mentions the administration taking a 10% equity stake in chipmaker Intel, raising questions about government control over private companies [29]

NBC News White House correspondent Yamish Elsyner joins me now along with NBC News business and data correspondent Brian Shan. Glad to have both of you here. Yamich, let me begin with you. Lisa Cook says she has no intention of leaving the Fed. What comes next in what looks like a standoff. >> What comes next, Kelly, is a legal battle. Lisa Cook has made it very clear that she's not walking away and her attorney says that she believes that he believes that the president doesn't have the authority to fire he ...

And right now we are 2 minutes away from the end of the trading day. Romaine Bostick here with Scarlet Fu taking you through to that closing bell with the global simulcast. It starts now.Tim Stenovec in the radio booth. Isabelle Lee by his side. Carol Massar has the day off.Welcome to our audiences across all of our Bloomberg platforms, including our partnership here on YouTube as we focus in on the biggest story of the day. Tim Turn it back. And of course, that is the nuptials between Travis Kelce and Tayl ...

Fed Independence & Politicization - The industry faces the most severe challenge to Fed independence in the last two generations, potentially marking the beginning of the Fed's politicization [2] - Politicization of monetary policy, reminiscent of the Nixon era, raises expectations of higher inflation, potentially leading to a self-fulfilling prophecy [3] - Independent central banking is crucial, as politicization can lead to market instability, resembling an emerging market scenario [4][6] - The administration's disregard for established norms poses substantial risks to the national economy [15] Market Response & Economic Impact - Short-term interest rates decreased due to expectations of Fed rate cuts, while long-term interest rates increased due to inflation concerns [5] - The dollar's value may decline due to anticipated money printing by a political Fed [5] - Loss of credibility can happen quickly, similar to how a forest can be burned down in an hour after decades of growth [6] Policy & Legal Considerations - The president's proposals for monetary policy, such as cutting interest rates to around 1%, are considered outside the reasonable range of debate [8] - The Fed's independence is rooted in law and tradition, reporting to Congress and not being part of the executive branch [13][14] - Public debate between the administration and the Fed can lead to loss of credibility and rising long-term interest rates [14]

President Donald Trump’s move to oust Federal Reserve Governor Lisa Cook immediately launched a legal fight and raised concerns about the future of Fed independence.On today’s Big Take Podcast, Bloomberg’s @sarahsholder and @mckonomy break down the controversy surrounding Cook’s potential ouster and its larger implications https://t.co/XqnkYKcAW2 ...

The likely argument that constitutional law experts tell me that Cook would make in this expected lawsuit is that the president cannot fire an independent executive agency branch member without cause. Now, the White House says there is cause according to the White House. Cook lied on mortgage applications saying that homes in both Michigan and Georgia were her primary residence.Now that uh for cause language that comes from the Federal Reserve Act and what it says is that federal board members keep their jo ...

Legal & Governance - The core legal issue revolves around whether there is sufficient "cause" for the president to remove Lisa Cook from the Federal Reserve Board, as the Federal Reserve Act does not define "cause" [1] - "Cause" generally implies inefficiency, neglect, or malfeasance, and it's premature to determine if the allegations against Lisa Cook meet this standard without an investigation [2] - Lisa Cook's lawyer is expected to file a lawsuit challenging the firing, with the main arguments focusing on whether the president satisfied the "for cause" standard and whether she continues to serve during litigation [3][7] - The Federal Reserve reaffirms its commitment to transparency, stating that removal protections serve as a safeguard, allowing governors to be removed only for cause [8] - The Federal Reserve will abide by any court decision [3] Federal Reserve Board Dynamics - The board of governors can continue to function appropriately even during this litigation, as Lisa Cook is only one member [9][10] - One of the seven governor seats is in flux due to Brianna Keilar's resignation and the unconfirmed nomination of Stephen Moran [10] Political Implications - The potential removal of Lisa Cook is viewed as a play by President Trump to control the Federal Open Market Committee (FOMC), which influences interest rates [11] - The Federal Reserve Board will have the opportunity to confirm or bar the reappointment of regional Reserve Bank presidents who serve on the FOMC in February [11] - Removing Lisa Cook could create a deadlock on the Federal Reserve Board, potentially impacting the reappointment of Reserve Bank presidents [11][12]

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