Friend,

Last month, in a letter posted on social media, President Trump attempted to fire Lisa Cook from the Board of Governors of the Federal Reserve. This is an unprecedented move, expanding the power of the President in a clear violation of the law. Moreover, it jeopardizes America’s economic stability by injecting partisan politics into our monetary policy.

For weeks, Trump has tried to pressure the Federal Reserve to lower interest rates. But the Federal Reserve Board was specifically designed to be insulated from this sort of political pressure, and Chairman Powell has tuned out Trump’s tweets while focusing on the nuts and bolts of sound decision-making. 

Trump’s furious, so he’s trying to install loyalists on the Fed who will follow his commands.

This isn’t a fight about whether or not the Fed should reduce interest rates. It’s a fight about who gets to decide. If the power rests with the President, our monetary policy is liable to shift with political winds, inflation will rise, and confidence in the markets could plummet. That’s why the Federal Reserve Act limits a President’s ability to unilaterally fire policymakers like Lisa Cook. 

No President, whether they’re a Democrat or Republican, should be able to fire Fed governors without cause. I know there’s a lot happening in the world right now, but this is a major new power grab that can’t be swept under the rug.

— Jim