Lisa... You're Fired?

Varun Mekala

January 2026

Drama in Washington is at an all time high, and Trump vs. Cook has just turned it up a notch. Here’s a breakdown of the most high-stakes firing in recent American history.

Let’s set the scene. In August 2025, President Trump took to social media to announce he is kicking Governor Lisa Cook from the Federal Reserve Board.The reason? He’s digging up old allegations of mortgage fraud from 2021, way before she started the job.

Here’s the problem, Federal Reserve Governors aren’t like Cabinet members; the president can’t just fire them because he doesn’t like them. They are set to 14 year terms, so the president holds no power when it comes to their position.

In the Federal Reserve Act, it holds that Federal Reserve Governors can be booted “for cause”. The Trump administration says the dirt they found is cause enough. Cook’s team believes that “cause” means the person must have made a mistake while in office.

On January 21st, the Supreme Court Justices joined the drama. The arguments were intense, revealing, and intellectual. Some Justices worry that if they side with Cook, people can get away with “skeletons in their closets”. Other Justices are terrified of giving the President power to just fire people who handle the money supply based on old news. 

I know it feels hard to care, but this could have a serious impact on your wallet. The Federal Reserve controls interest rates. If the Fed becomes a political tool, rates could be moved to help win elections rather than to keep inflation down. That means the price of your groceries, your car loan, and your mortgage could suddenly be tied to whoever's winning in the polls.

The Supreme Court is expected to drop its final ruling by June. Until then, Lisa Cook is still in her seat, the President is still fuming. We are yet to see if the Federal Reserve Board can maintain its “independence” from the president.