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Senate Minority Leader Chuck Schumer accused U.S. President Donald Trump of “playing a dangerous game” with the American economy after he moved to fire Lisa Cook from the Federal Reserve.
“This attempted firing shreds the independence of the Fed and puts every American’s savings and mortgage at risk,” Schumer, a New York Democrat, said in a statement posted to X.
“Donald Trump is playing a dangerous game of Jenga with a key pillar of our economy. This brazen power grab must be stopped by the courts before Trump does permanent damage to national, state, and local economies.”
Trump, who is seeking greater influence over the central bank as he pushes for lower interest rates, fired Cook from the Board of Governors over a mortgage application for her second home.
He accused Cook of deceit and potential fraud to secure better mortgage terms for a second home, which she denies, and she said the president lacks the authority to fire her because there is no cause.
The political independence of the Federal Reserve is a central pillar of the U.S. economic and financial system.
Any signs it is losing that independence put the dollar’s strength at risk by undermining confidence in its future stability and reliability, and the Fed’s freedom to tackle problems free from political interference. The cost of borrowing would also rise with the risk.
This is a breaking news story. Updates to follow.