Why the Federal Reserve has historically been independent of the White House
August 25, 2025
President Donald Trump says he is firing Federal Reserve Governor Lisa Cook after she was accused of mortgage fraud. It’s the latest effort by his administration to exert greater control over one of the few remaining independent agencies in Washington. Cook previously said she would not leave her post. Trump has repeatedly attacked the Fed’s chair, Jerome Powell, for not cutting its short-term interest rate, and even threatened to fire him. Firing Powell or forcing out a governor would threaten the Fed’s venerated independence, which has long been supported by most economists and Wall Street investors.