We the People Can President Trump Fire Federal Reserve Governor Lisa Cook?
Sep 4, 2025
Michael McConnell, a Stanford law professor and former federal judge, and Christine Chabot, a Marquette law professor who defends agency independence, debate Lisa Cook’s firing and the president’s removal power. They explore the Fed’s unique structure, historical analogies to early banks and sinking funds, statutory for-cause removal language, and how courts might assess presidential motives.
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Why Fed Independence Matters
- The Fed's independence rests on for-cause removal protections that shield governors from direct presidential control.
- That insulation lets the Fed pursue long-term goals like stable prices and maximum employment instead of short-term political aims.
Two Different Fed Functions
- The Fed combines central bank market operations with ordinary regulatory command-and-control functions that differ constitutionally.
- Michael McConnell argues regulatory functions require presidential control while market functions may not.
Hamilton's Sinking Fund Commission
- The sinking fund commission, proposed by Alexander Hamilton, included the chief justice and the vice president as independent members.
- It approved purchases to pay down debt and limited presidential control over those executive financial decisions.
