WASHINGTON – President Donald Trump on Wednesday called for the resignation of Federal Reserve Governor Lisa Cook, an unprecedented public demand targeting a specific member of the central bank's board. The move represents a significant escalation of the president's long-standing campaign to influence the institution's monetary policy, particularly its stance on interest rates.

The call, first reported by The Washington Post, was made in a social media post where the President criticized the Federal Reserve's current economic strategy. This direct intervention into the personnel of the independent agency has drawn sharp criticism from economists and Democratic lawmakers, who warn it threatens the central bank's credibility and its ability to manage the U.S. economy free from short-term political pressures.

A Direct Challenge to Central Bank Independence

The Federal Reserve is designed to operate independently from the executive and legislative branches to ensure its decisions on interest rates and inflation are based on economic data, not political expediency. While presidents have historically voiced displeasure with Fed policy, a public call for the resignation of a specific governor is a stark departure from established norms.

In his statement, President Trump did not specify his exact policy disagreements with Governor Cook but broadly linked his demand to his desire for lower interest rates to stimulate economic growth. The Fed has maintained a cautious approach in recent months, citing persistent inflationary pressures as a reason to hold rates steady.

The White House has not yet offered further comment beyond the President's initial post. The Federal Reserve, adhering to its traditional policy of not engaging in political disputes, has declined to comment on the matter.

Who is Governor Lisa Cook?

Dr. Lisa D. Cook was sworn in as a member of the Board of Governors of the Federal Reserve System in May 2022, following her nomination by President Joe Biden. She is the first African American woman to serve on the board.

An accomplished macroeconomist with a Ph.D. from the University of California, Berkeley, her research has focused on economic growth, innovation, and financial crises. Before her appointment, she was a professor of economics and international relations at Michigan State University. Her supporters view her as a highly qualified expert whose perspective brings valuable depth to the board's deliberations.

The Fed's Mandate and Political Headwinds

The central bank operates under a dual mandate from Congress: to promote maximum employment and maintain stable prices. The independence of the Fed is considered by most economists to be a cornerstone of modern economic management, allowing it to make unpopular but necessary decisions, such as raising interest rates to combat inflation.

President Trump has frequently criticized the Fed's leadership, particularly during his first term when he repeatedly lambasted then-Chair Jerome Powell for raising interest rates. However, this latest action singles out an individual governor, a move that critics argue is intended to intimidate board members and politicize the institution.

Economists and former Fed officials have warned that such pressure could erode market confidence in the U.S. dollar and the stability of the American financial system. If markets perceive the Fed as beholden to political whims, its inflation-fighting credibility could be severely damaged, potentially leading to greater economic volatility.

The immediate impact on monetary policy is unclear, as Fed governors serve fixed 14-year terms specifically to insulate them from political cycles. Governor Cook can only be removed for cause, a high legal standard not met by a policy disagreement. Nonetheless, the public challenge injects a new level of political tension into the central bank's vital work.