Rates Spark: The Lisa Cook affair and the curve

Very harmful

The comparison with the private sector is flawed here. We don't know all the details of Dr. Lisa Cook's employment contract at the FED, but the US president is likely not the employer of a FED employee; that is most likely the FED, which is overseen by Congress and independent of the president. The governor of the FED can be dismissed by Congress or maybe the Chairman under certain conditions, "for cause". From what has now emerged, the conditions for removing Dr. Lisa Cook are not being met. The real motive for the president's illegal actions is to gain control over the FED and the FOMC's interest rate policy, which all experts say is important for independence from politics and therefore form the president. The president's attemps to fire Jerome Powell were unsuccesful. Even a relative slight budget overrun for a renovation at the FED didn't give the president the traction to remove the FED chair. The attact on Lisa Cook must therefore be seen as another blatant attempt by Trump to get his way, as he always does and has done, even outside of politics, it is the only way he knows. Any reputable, independent judge will see through this and declare the president's claim inadmissible. This is also true in private employment law cases. Of course, the ultimate conclusion in a specific case could be that the employment relationship has been seriously disrupted, after which the employer must pay substantial damages if the disrupted working relationship is entirely attributable to the employer, which is clearly the case here. But again: in my opinion, there is no direct employment relationship between the president and the FED governor. This means that the president's notice of dismissal is inadmissible, and Dr. Lisa Cook can simply stay on and continue her work as governor of the FED.

Also worth reading:
https://www.cnbc.com/2025/08/27/trum...ge-fraud-.html

Fed now has to clean its name from the stigma of corruption and incompetence.