As Jim Bianco explains in a brief post on X:\u00a0<\/a><\/p>\n If they allow her to continue with her duties as Fed Governor, starting this morning, and the courts find that the President does have the authority to fire her, even if it’s months later during an appeal,\u00a0anything she does on behalf of the Fed as a Governor starting today will not be valid.<\/strong><\/em><\/p>\n And the Fed could be held responsible for allowing a non-employee to continue to act like an employee.<\/em><\/p>\n Restated, if the Fed allows her to stay\u00a0<\/strong>and continue to be a Governor, and the court rules that Trump can fire her (again, even if it is later in an appeal), then\u00a0Jay Powell has potentially committed a “for-cause” offense for which he could be fired.<\/strong><\/em><\/p>\n (allowing a non-Fed employee to make decisions and policy on behalf of the Federal Reserve.)<\/em><\/p><\/blockquote>\n Additionally, Cook has\u00a0hired former first son Hunter Biden\u2019s lawyer, Abbe Lowell, to represent her.\u00a0<\/strong><\/p>\n In a statement, Lowell vowed to take \u201cwhatever actions are needed\u201d to stop what he described as Trump\u2019s \u201cillegal action.\u201d<\/p>\n As a reminder, Fed Governors resigning is not unusual in recent years:<\/strong><\/p>\n This is far from over.<\/p>\n *\u00a0 *\u00a0 *<\/em><\/p>\n Update (2330ET)<\/strong>:\u00a0<\/em> \u201cPresident Trump purported to fire me \u2018for cause\u2019 when no cause exists under the law, and he has no authority to do so,\u201d<\/strong>\u00a0Cook said through a spokeswoman: WaPo<\/em><\/p>\n \u201cI will continue to carry out my duties to help the American economy as I have been doing since 2022,\u201d Cook said<\/em><\/p><\/blockquote>\n Good luck with that plan when the FBI turns up tomorrow at your place of work.<\/p>\n *\u00a0 *\u00a0 *<\/p>\n Promises made… promises kept…<\/em><\/p>\n On Friday,<\/a>\u00a0President Trump warned that he would fire\u00a0Federal Reserve Governor Lisa Cook\u00a0<\/strong>who\u00a0allegedly\u00a0“falsified bank documents and property records to acquire more favorable loan terms”<\/a>\u00a0if she didn’t resign<\/strong>…<\/p>\n .@POTUS<\/a>\u00a0on Federal Reserve Governor Lisa Cook: “I’ll fire her if she doesn’t resign. What she did was bad, so I’ll fire her if she doesn’t resign.”\u00a0pic.twitter.com\/1vEv7k7ar8<\/a><\/p>\n \u2014 Rapid Response 47 (@RapidResponse47)\u00a0August 22, 2025<\/a><\/p><\/blockquote>\n She immediately played the victim card,<\/a>\u00a0claiming\u00a0she “would not be bullied”<\/strong>.<\/p>\n But now that is moot as President Trump has fired her, effective immediately:<\/p>\n ”\u00a0I have determined that there is sufficient cause to remove you from your position…<\/strong><\/em><\/p>\n …<\/em><\/p>\n The Federal Reserve has tremendous responsibility for setting interest rates and regulating reserve and member banks.\u00a0The American people must be able to have full confidence in the honesty of the members entrusted with setting policy and overseeing the Federal Reserve.<\/strong><\/em><\/p>\n In light of your\u00a0deceitful and potentially criminal conduct\u00a0<\/strong>in a financial matter, they cannot and I do not have such confidence in your integrity.<\/em><\/p>\n At a minimum, the conduct at issue exhibits the sort of gross negligence in financial transactions that\u00a0calls into question your competence and trustworthiness<\/strong>\u00a0as a financial regulator.”<\/em><\/p><\/blockquote>\n Full letter below:<\/p>\n Trump will now have a majority on the Fed Board…<\/strong><\/p>\n If\/when Cook leaves\/is fired, Trump will have a majority on the Fed board\u00a0pic.twitter.com\/6Hxn8f2PPw<\/a><\/p>\n \u2014 zerohedge (@zerohedge)\u00a0August 21, 2025<\/a><\/p><\/blockquote>\n Trump was quick to make note of her dismissal on Truth Social:<\/p>\n Reminder, The Fed is not political… etc, etc…<\/p>\n Exactly 6 years later, Trump has an answer to Dudley’s op-ed\u00a0https:\/\/t.co\/sHwvmxAKhp<\/a><\/p>\n \u2014 zerohedge (@zerohedge)\u00a0August 26, 2025<\/a><\/p><\/blockquote>\n There is a\u00a0silver lining<\/strong>\u00a0for her…<\/p>\n The good news is Cook will soon be able to refinance at a much lower rate.\u00a0https:\/\/t.co\/5Coxyp8iDd<\/a><\/p>\n \u2014 zerohedge (@zerohedge)\u00a0August 26, 2025<\/a><\/p><\/blockquote>\n How long before Democrats decry this racist act and demand it be appealed all the way to SCOTUS?<\/p>\n Or will she skulk away sheepishly admitting she broke the law rather than face the\u00a0discovery that Bill Pulte has already exposed<\/strong><\/a>?<\/p>\n There was a notable market reaction<\/strong>\u00a0to this move with gold rallying as the dollar dropped and short-end bonds are bid (stocks lower)…<\/p>\n With rate-cut odds rising for Sept and more for December.<\/p>\n\n
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