Elizabeth Warren (D-Mass.) criticized President Donald Trump for dismissing Lisa Cook, a Federal Reserve Governor, and described it as an “authoritarian power grab.”
Warren Says Trump Firing Cook Is A Distraction
Warren took to X to express her disapproval of Trump’s decision to fire Cook. She accused the President of using Cook as a “scapegoat” to distract from his own failure to reduce costs for Americans.
Warren also claimed that Trump’s move is in violation of the Federal Reserve Act. “…any court that follows the law will overturn it,” added the Democratic Senator.
On Monday, Trump removed Cook from her position, citing “deceitful and potentially criminal conduct”. This move followed a “criminal referral” from William J. Pulte, director of the Federal Housing Finance Agency, to U.S. Attorney General Pamela Bondi.
Markets React Amid Concern Over Fed's Independence
Trump’s decision to remove Cook was met with widespread criticism. Many viewed it as an attempt to undermine the independence of the Federal Reserve.
Cook, in turn, rejected the allegations, stating she had "no intention of being bullied to step down," while emphasizing that she takes questions about her financial history very seriously. She has also refused to resign.
Before her dismissal, Cook had raised concerns about the state of the U.S. economy, particularly in light of a disappointing jobs report, which revealed that employers added only 73,000 jobs, significantly below expectations. Cook suggested that this could indicate a shift in the U.S. economy.
Her removal has sparked fears of political interference in the Federal Reserve’s decision-making process, which could have serious implications for the stock market and the broader economy. Following her dismissal, U.S. stock futures fell, indicating the market’s reaction to the unexpected move.
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, traded in premarket on Monday. The SPY was down 0.050% at $642.47, while the QQQ declined 0.10% to $570.32, according to Benzinga Pro data.
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