On “The Apprentice,” Donald Trump had the authority to eliminate contestants with a simple “You’ve been fired.” However, as president, he seems to believe he can exercise similar power over federal officials, which isn’t the case.
One of the latest victims in this ongoing saga is Lisa Cook, a well-respected member of the Federal Reserve. Trump accused her of mortgage fraud, an allegation that appears dubious.
Cook is standing her ground. After Trump terminated her position in August, she filed a lawsuit asserting he lacks the authority to dismiss her. She boldly stated, “I won’t resign.” In court documents, her lawyer maintained that she “never committed a mortgage scam.”
The US District Judge Jia Cobb issued a temporary restraining order on September 9, preventing Cook’s termination as her case proceeds. The final verdict on her position at the Fed may ultimately fall to the Supreme Court.
Under the law, the president can only fire members of the Fed for “cause,” and historically, no president has ever dismissed a Fed member in its 112 years. Trump’s unfounded claims about Cook allegedly meeting this “cause” requirement are questionable at best.
If Cook accidentally made an error on a mortgage application, without any fraudulent intent, that doesn’t justify her being ousted. Mistakes in such documents are common, but typically, only targeted individuals face charges. Nonetheless, the New York Times has reported that the Department of Justice is investigating her.
This investigation seems more like a fishing expedition aimed at giving Trump a reason to fire Cook.
Additionally, evidence points to political motives behind the DOJ’s actions, particularly given that Trump’s administration previously pursued investigations into mortgage fraud involving political adversaries like **New York Attorney General Letitia James** and **Senator Adam Schiff**, both of whom deny any wrongdoing.
Interestingly, Propublica has highlighted that several Trump cabinet members have made multiple claims on mortgage applications for major residences to secure lower interest rates, yet there’s been no investigation into them.
Trump has consistently urged the Fed to cut interest rates significantly, arguing it would politically benefit him by making borrowing cheaper for Americans. He would stand to gain personally as well, given the estimated billions in business debt.
If Cook is removed, it would allow Trump to appoint a successor, creating a board majority that could push for the lower interest rates he desires.
Chairman Jerome Powell and the Fed have resisted cuts since December 2024, worried about rising prices, partly stemming from tariffs tied to Trump’s policies. Increased inflation can lead to higher long-term interest rates.
Trump has called for Powell to step down but hasn’t officially fired him. Instead, he chose to dismiss Cook, the first Black woman on the Federal Reserve Board. If the court permits her removal, there’s a chance Trump could fabricate charges against Powell as well, which could result in financial markets reacting negatively to the politicization of the Federal Reserve.
Moreover, terminating Cook based on unproven allegations undermines her constitutionally protected rights and sets a worrying precedent. If mere allegations can remove federal officials, it could lead to rampant dismissals, including potentially Trump himself, who faces serious criminal charges far beyond mortgage fraud.
Trump was previously convicted of 34 felony counts related to falsifying business records last year, which he used to exploit in the 2016 election. His reelection effectively provided him immunity from repercussions for those convictions and other alleged crimes.
The Federal Reserve was established to ensure a secure, stable financial system insulated from political influence. Unfortunately, Trump appears unwilling to accept the limitations of his role. He seems to prioritize personal loyalty over the rule of law and public service.
As he stated on August 26, Trump believes he holds the right to act as he wishes as president. During his first term, he made similar assertions about having the authority to do anything under Article 2 of the Constitution.
But he’s mistaken. Only a dictator operates without checks and balances. The Constitution was designed to limit such power and prevent authoritarianism. We cannot allow these foundational principles to erode.
Trump should refrain from attacking the Fed and its members and issuing threats of termination. He’s not the reality show star anymore; it’s time to recognize that in our democracy, power can’t reside unchecked in one person’s hands.
