Georgia-born economist says she won’t leave the Fed despite Trump firing her

“At a minimum, the conduct at issue exhibits the sort of gross negligence in financial transactions that calls into question your competence and trustworthiness as a financial regulator,” Trump wrote in a letter to Cook.

But Cook said “no cause exists under law” to remove her. Experts have questioned whether Trump’s firing would stand up in court because a “for cause” removal usually requires a proceeding to allow Cook to defend herself, which has not happened.

The accusations stem not from a federal investigation, but from statements made by Bill Pulte, director of the Federal Housing Finance Authority and a Trump appointee.

If successful, Trump’s firing attempt would give him a majority of allies on the Federal Reserve Board and position him to press for lower interest rates and exert more direct control over the independent central bank. That’s something Chairman Jerome Powell has been reluctant to do.

There’s no telling what happens now. No president has ever sought to oust a sitting Fed governor, and the move could backfire by jolting investor confidence in the powerful body. Overseas markets fell following Trump’s announcement late Monday on Truth Social and domestic stock market futures were lower as well.

Cook, the first Black woman to serve on the seven-member board, is making clear she will fight back. Her attorney, Abbe Lowell, said Trump’s “reflex to bully is flawed and his demands lack any proper process, basis or legal authority.”

He added: “We will take whatever actions are needed to prevent his attempted illegal action.”

This story was originally published in the Politically Georgia newsletter.