The Daily Trump’s Takeover of the Fed
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Aug 27, 2025 
Ben Casselman, Chief Economics Correspondent for The New York Times, delves into President Trump's audacious attempts to fire Fed board member Lisa Cook, raising concerns about the central bank's independence. He highlights Cook's remarkable journey from civil rights struggles to her role at the Fed. The discussion touches on political maneuvering and its dangerous implications for economic stability. Additionally, Casselman emphasizes how uncertainty affects innovation and participation, particularly for marginalized communities, amidst Trump's controversial influence over monetary policy.
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Violence Suppresses Innovation
- Cook's research links violence and insecurity to a sharp decline in Black patenting and innovation during post-Reconstruction America.
- She argues that physical insecurity acts like a tax on innovation and harms the broader economy.
Narrow Path To The Fed
- Cook built a distinguished career studying international economics, Russia, and economic inclusion and was nominated by President Biden to the Fed Board in 2022.
- Her confirmation was narrowly approved by a 50-50 Senate vote broken by Vice President Kamala Harris.
A New Route To Control The Fed
- Trump sees Fed independence as an obstacle and has repeatedly pressured Jay Powell to lower interest rates in his prior term.
- That pressure evolved into a broader plan to control the Fed through replacing governors rather than firing the chair outright.