US President Donald Trump announced the dismissal of Lisa Cook, the first Black woman to serve on the Federal Reserve Board of Governors, in an unprecedented move that threatens the independence of the US central bank. Trump stated that his decision followed accusations against Cook of misleading banks to obtain preferential terms on mortgage loans, calling her behavior ‘deceptive’ and a breach of American trust. Cook, who made history in 2022 as the first Black woman on the Fed board, rejected the decision, declaring there was no legal basis for her removal and refusing to resign. Her lawyer, Abby Lowell, announced plans to pursue all legal avenues against what he described as an ‘unlawful removal.’ The move sparked widespread criticism from economists and legal experts warning that presidential interference could undermine the institution responsible for US monetary policy.

Professor Peter Conti-Brown of the University of Pennsylvania warned this could mark ‘the end of central bank independence as we know it.’ Prominent Democratic politicians, including Senator Elizabeth Warren, condemned the decision as an authoritarian power grab violating the Federal Reserve Act and called for its judicial annulment. The dismissal follows the recent resignation of Governor Adriana Kugler, giving Trump the opportunity to appoint two new board members, potentially securing a majority aligned with his desire to rapidly cut interest rates. While a legal battle expected to last months unfolds, observers see this as a critical test of the boundaries between executive power and central bank independence in the world’s largest economy.