Monday, September 15, 2025 -Federal Reserve Governor Lisa Cook has asked an appeals court to reject the White House’s attempt to remove her from the Fed board, escalating a rare and dramatic clash within the nation’s top financial institution.
Cook, who was confirmed to the board after a contentious fight in Congress, framed the move as politically motivated interference that undermines the Fed’s independence.
The White House has argued that Cook’s term is not legally valid and that the president has authority to restructure the board. But Cook’s legal team insists that the Federal Reserve must remain insulated from political pressure, warning that such a precedent would destabilize financial governance.
The dispute has drawn sharp attention from lawmakers, with critics accusing the administration of overreach.
The case carries sweeping implications for both markets and central bank credibility. If the White House prevails, it could open the door to broader political influence over the Fed at a time when investors are already sensitive to signals on interest rates and inflation.
If Cook succeeds, it will reinforce the institution’s independence but deepen the confrontation between the executive branch and the central bank.
0 Comments