Krugman: Trump Attempt to Fire Lisa Cook is Illegal

Tuesday, August 26, 2025

Paul Krugman: Yesterday Donald Trump said that he had fired Lisa Cook, a member of the Federal Reserve Board of Governors. My wording is advisable: He "said" that he had fired her. I'm not a lawyer, but it seems clear that he does not have the right to summarily fire Fed officials, certainly on tissue-thin allegations of mortgage fraud before she even went to the Fed.

Posted by retort at 11:48 AM | 6 COMMENTS | permalink | Comment on This Entry |

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If [Fed chairman Jerome] Powell caves, or the Supreme Court acts supine again and validates Trump's illegal declaration, the implications will be profound and disastrous. The United States will be well on its way to becoming Turkey, where an authoritarian ruler imposed his crackpot economics on the central bank, sending inflation soaring to 80 percent:

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Someone should tell Paul that mortgage fraud is also illegal but here we all are lolz.

#1 | Posted by Bluewaffles at 2025-08-26 12:05 PM | Reply | Funny: 1

Someone should tell Trumpy to take care to faithfully execute the law. She has not Ben charged or convicted. And no evidence presented in a court under oath.

Until then it's another Trumpy lie.

Also

Who has actually been convicted of mortgage fraud?

Oh yeah. Trumpy.

#2 | Posted by donnerboy at 2025-08-26 12:15 PM | Reply | Newsworthy 1

I find it hard to believe this lady did what she is accused of, but stranger things have happened this week. It is shameful that no evidence has been presented, yet by some minds, she is out of a role at The Fed. Even Der Dotard had a trial. Present the case and the evidence, and let a skeptical world decide.

In the meantime, one of the most important economic entities in the Western World is under attack and if Trump is successful, the effects on the US economy will be dramatic and long-lasting. Until January, 2017 political risk was not something that needed to be considered in the US capital markets. Those days are gone, and that risk continues to grow...

#3 | Posted by catdog at 2025-08-26 12:29 PM | Reply

But Trump's lackies say the president can do whatever they want. Just like how the Founding Fathers intended.

#4 | Posted by Derek_Wildstar at 2025-08-26 12:32 PM | Reply

Present the case and the evidence, and let a skeptical world decide.

The executive branch isn't the judicial branch, why should the world decide? I find it interesting all these new rules include "letting the world decide" the executive branches authority.

It does create a conundrum though, we might get an official ruling from SCOTUS on whether the Fed is Constitutional, and/or under the executive branch.

If its not under the executive branch what branch is it under?

#5 | Posted by oneironaut at 2025-08-26 01:08 PM | Reply

"the implications will be profound and disastrous"

Haven't we already crossed that line numerous times? The larger problem is that nobody is doing anything about it. Somebody who could do something about it needs to grow a gawd-damned spine!

#6 | Posted by Whatsleft at 2025-08-26 01:36 PM | Reply