Will Not End Well

Dollar drops sharply (this one is USD/JPY

Breaking news: *TRUMP REMOVES FED'S COOK EFFECTIVE IMMEDIATELY pic.twitter.com/YlrREpdSUA

— David Ingles (@DavidInglesTV) August 26, 2025

The markets did not take this well

In his continuing quest to fire black women from anything resembling a position of authority, Donald Trump has announced that he will be firing Federal Reserve Governor Lisa Cook.

There is a vague allegation of wrongdoing on a mortgage application that is being used as a justification.

As an aside, mortgage fraud is criminal, and a Baltimore mayor was convicted of such, but this is awfully weak tea:

President Trump said on Friday that he would fire Lisa Cook, a member of the Federal Reserve Board, if she did not resign her post, as he looked to leverage new allegations around her past mortgage applications in a bid to remake the top ranks of the nation’s central bank.

Mr. Trump issued his latest threat, which would most likely face severe legal obstacles, two days after Bill Pulte, the federal housing director, accused Ms. Cook of falsifying records to obtain favorable loan terms. Mr. Pulte referred the matter to the Justice Department, a representative of which said the case “requires further examination.”

While the two men have criticized Ms. Cook for her actions, and Mr. Pulte has insisted his primary goal is to root out fraud, they have each done so in the context of an expanding campaign to oust officials on the Fed’s Board of Governors, including its chair, Jerome H. Powell.

By forcing out sitting governors, the president could appoint a set of loyalists who share his desire to lower interest rates, which the central bank has kept steady in response to persistent concerns about inflation. Mr. Trump has already announced one nominee for the board, tapping Stephen Miran, the chairman of the White House Council of Economic Advisers, for the spot that Adriana Kugler abruptly vacated this month. Ms. Kugler's term was initially set to end in January, and Mr. Miran, a critic of the Fed, will need to be confirmed by the Senate.

I expect another stern letter from Chuck Schumer.

I'd rather see a Schumer letter from Howard Stern.