US News
LAST UPDATE: August 26, 2025
Trump Moves to Fire Fed’s Cook, Setting Up Historic Legal Fight
President Trump attempted to fire Federal Reserve Governor Lisa Cook, marking an unprecedented move against an independent monetary institution.
Insight
This sets the stage for a significant legal battle that could challenge long-established Fed independence.
Fed’s Cook says Trump has no authority to fire her, will not resign
Governor Lisa Cook responded to President Trump’s move by asserting she will not resign, stating that the president lacks the legal authority to remove her from the Federal Reserve.
Insight
The standoff highlights constitutional ambiguity and potential erosion of central bank autonomy.
FACTBOX-What’s known about the legal premise for Trump’s effort to fire Fed’s Cook
Legal experts explain that the Federal Reserve Act typically allows removal of a governor only for cause, which is interpreted narrowly and likely does not include President Trump’s rationale.
Insight
The case shines a light on longstanding but under-tested provisions limiting executive control over central bank officials.
Fed’s Williams Says Low Neutral-Rate Era ‘Appears Far From Over’
New York Fed President John Williams stated that the structural forces keeping neutral interest rates low—such as demographics and productivity—remain intact.
Insight
Williams’ remarks suggest that central banks may not need to return to higher neutral rates anytime soon.
Fed can improve communications on balance sheet, diversity of views, Logan says
Fed Governor Logan said the Federal Reserve could better communicate its balance sheet policies and reflect a broader range of perspectives in decision-making.
Insight
The remarks indicate institutional self-reflection and efforts to enhance transparency within the Fed.
Trump Vows Export Curbs, Tariffs in Digital Tax Reprisal
President Trump threatened punitive export restrictions and tariffs against countries implementing digital service taxes targeting U.S. tech firms, calling such measures discriminatory.
Insight
The threat reflects escalating U.S. trade aggression in response to digital taxation, with potential global ramifications.
