Shares in stock markets around the globe were sinking Tuesday after President Donald Trump announced he's firing Federal Reserve Governor Lisa Cook, an unprecedented move that would constitute a sharp escalation in his battle to exert greater control over what has long been considered an institution independent from day-to-day politics.
But Cook said she's not leaving: “President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so,” she said in an emailed statement. “I will not resign.”
Trump said in a letter posted on his Truth Social platform that he is removing Cook effective immediately because of allegations that she committed mortgage fraud. Market reaction was swiftly negative — economists have long preferred independent central banks because they can more easily take unpopular steps to fight inflation and ensure the economic stability that is key to business confidence.