Fed Official Lisa Cook Stays Put Despite Trump's Push to Fire Her

Federal Reserve Governor Lisa Cook, the first Black woman to serve on the Fed’s board, said Monday she’s not going anywhere, even as President Donald Trump tries to remove her from her job.

Speaking at the Brookings Institution, her former employer, Cook addressed an audience on "The Outlook for the Economy and Monetary Policy," her first public outing since the controversy erupted. Met with warm applause, she struck a defiant yet measured tone. "Top public jobs are definitely worth the scrutiny," Cook said. "I had to learn to have a thick skin if I thought the principle was worth pursuing."

She pledged to "execute this charge given by Congress," emphasizing that central bank independence "is something worth pursuing. This too shall pass. I will continue doing this work on behalf of the American people."

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The trouble started in August when Trump accused Cook of lying on a home-loan application and said he was firing her. She denied the claim, and federal judges quickly blocked the move. Her position on the seven-member board is now safe until the U.S. Supreme Court hears the case in January 2026.

The key question: Can a president fire a Fed governor whenever he wants? The law says governors serve 14-year terms and can only be removed “for cause.” No one knows exactly what that means for Fed officials, and this will be the first time the Supreme Court weighs in.

Trump has criticized the Fed before, especially Chair Jerome Powell, whose term ends next May. With three of his own appointees already on the board, Trump wants a majority to shape interest-rate decisions. So far, markets aren’t panicking—long-term inflation expectations are steady, and bond yields have even fallen a bit.

Former Fed Governor Randall Kroszner, speaking at the Peterson Institute, downplayed immediate risks. "The key is what are going to be the outcomes," he said, noting markets view potential successors as "reasonable."

Cook, appointed by former President Biden, still has years left on her term. She called the Fed job “the honor of my life.” For now, the courts have kept her in place, and she’s back to work.

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The case could set a major precedent about how much control a president has over the central bank—and whether politics can sway the economy.