Trump ramps up battle to fire Fed s Lisa Cook. Her lawyers say there s no basis to remove her

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Published: 2026-10-09T18:15:05.976Z • Permanent link

Donald Trump's administration is intensifying its pressure campaign to remove Federal Reserve Chair Lisa Cook from her position. The latest development comes after a flurry of reports and sources indicate that Trump has instructed the Congressional Oversight Committee to launch an investigation into Cook's suitability for office. The committee is expected to scrutinize Cook's background, tenure, and actions as Fed Chair, with a focus on whether there are grounds to remove her from her position. Cook's lawyers have thus far maintained that there is no basis for her removal, citing her unblemished record and lack of any credible allegations against her.

According to sources familiar with the matter, Trump's motivations for targeting Cook are rooted in her perceived hawkish stance on monetary policy and her role in navigating the Fed through a period of high inflation and interest rate volatility. Trump is said to be particularly incensed by Cook's decision to raise interest rates to combat inflation, which he believes has hurt the economy and undermined his own business interests. The President has also been critical of Cook's comments on the economy, which he sees as overly pessimistic and dismissive of his own policies.

Cook's removal from office would be a significant blow to the Fed and the US economy as a whole. Her departure would leave a power vacuum at the top of the Fed, potentially leading to a period of instability and uncertainty in financial markets. Furthermore, Cook's expertise and experience would be lost, which could impact the Fed's ability to navigate future economic challenges. As one insider noted, "Cook's removal would be a major setback for the Fed and the economy. She's a highly respected and experienced leader, and her departure would leave a void that would be difficult to fill.

The potential removal of Lisa Cook from her position as Fed Chair has significant implications for the financial industry, research communities, and markets. Companies such as Goldman Sachs, JPMorgan Chase, and Morgan Stanley have all expressed support for Cook, citing her expertise and leadership on monetary policy. Research communities, including economists and financial analysts, would also be impacted by her departure, as she has been a key player in shaping the Fed's economic views and policy decisions.

The impact on markets would also be substantial, as Cook's removal would raise concerns about the Fed's ability to navigate future economic challenges. This could lead to increased volatility in financial markets, particularly in sectors such as interest rates, credit, and equities. Furthermore, the removal of Cook would also raise questions about the Fed's independence and ability to function effectively, potentially undermining investor confidence in the financial system.

Cook's removal from office is part of a larger pattern of pressure on the Fed and its leaders. In recent years, the Trump administration has been critical of the Fed's monetary policy decisions, particularly its decision to raise interest rates to combat inflation. The President has also been at odds with Fed leaders, including Chairman Jerome Powell, over issues such as the Fed's independence and its role in shaping the economy. This tension has been building for years, and Cook's removal is seen by many as the latest escalation in the administration's efforts to exert pressure on the Fed.