Trump is trying to fire a Fed governor. Here's what happened when other countries' presidents did the same thing.

[Rogue Valley]

Trump is trying to fire a Fed governor. Here's what happened when other countries' presidents did the same thing.

President Donald Trump wants to fire Federal Reserve Gov. Lisa Cook. Here's what it means for inflation and interest rates.

www.businessinsider.com

8.26.25
President Donald Trump is trying to oust Federal Reserve Gov. Lisa Cook — and if he succeeds, it could mean bad news for your wallet. While Trump's closer-term aim is likely to pressure the Fed to lower interest rates, international historical precedent shows that the longer-term result of a president sacking central bank officials could be both higher rates and higher inflation. In Turkey, for instance, President Tayyip Erdogan fired Naci Agbal, the country's central bank chief, in 2021. Reuters reported that a hefty interest hike was "the last straw" for Erdogan. In the wake of the firing, the value of Turkey's lira tumbled, and inflation spiked. In 2010, a similar showdown occurred in Argentina, when President Cristina Fernández de Kirchner attempted to fire central bank president Martín Redrado over his refusal to release reserve funds to pay down international debt. Inflation spiked in the country, even as the government reportedly underreported rates of price hikes.

But cutting rates in the US too hard and too early — especially when inflationary pressures like a still-robust labor market and tariffs linger — could lead to a resurgence of price hikes. Already, there's been some modest economic fallout from Trump's move — and that might only continue. "The dollar has weakened, which is taking purchasing power out of your pocket mechanically, and we've seen the 30-year treasury rise, so that means more expensive mortgages," Jacquez said. He said it's a "frog boiling in the water moment" for the market. "They have been desensitized to everything Trump has done, but there will come, I believe, a tipping point here.

The Federal Reserve System considers itself "an independent central bank because its monetary policy decisions do not have to be approved by the president or by anyone else in the executive or legislative branches of government, it does not receive funding appropriated by Congress, and the terms of the members of the board of governors span multiple presidential and congressional terms. In our history, no US president has attempted to hijack the Federal Reserve Bank and fire Fed Governors. Federal reserve Governor Lisa Cook has filed a lawsuit against Donald Trump.

Remember a few weeks ago Trump fired the Bureau of Labor Statistics Commissioner because Trump didn't like the Jobs Report (new employment was down). One doesn't need a degree in Economics to understand the dangers of a president with total control to manipulate interest rates and hide bad economic numbers. An economy cannot be successfully managed like that. Even Vladimir Putin is smart enough to leave his Bank of Russia Director (Elvira Nabiulina) alone.

 

[Jetboogieman]

Economically speaking.

This is about as dangerous as it gets.

If Trump succeeds, all bets are off for the US economy.

In a matter of months, Trump has undermined, infected and corrupted every single institution he can get his hands on.

 

[bongsaway]

He needs cause to fire her but he's trying to do it from an accusation with no proof of any wrongdoing. This is how the rabid gop of today works. Make an accusation and then go in with force to solve the problem that wasn't there, in trump's favor of course.