Fed feud: Donald Trump's dangerous attack on the central bank

美联储纷争:唐纳德·特朗普对央行危险的抨击

Editor's Picks from The Economist

2025-09-02

9 分钟
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A handpicked article read aloud from the latest issue of The Economist. A firing at the Federal Reserve has ignited a brewing feud between Donald Trump and the central bank. Three key pressure points will determine how much damage the president will inflict on the agency. Listen to what matters most, from global politics and business to science and technology—subscribe to Economist Podcasts+. For more information about how to access Economist Podcasts+, please visit our FAQs page or watch our video explaining how to link your account.
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  • Hello, Alice Fullwood here, co-host of Money Talks,

  • our weekly podcast on markets, the economy and business.

  • Welcome to Editor's Picks.

  • You're about to hear an article from the latest edition of The Economist.

  • Thanks for listening.

  • Pity the bond trader without Truth Social on their phone.

  • All it took was one after-dinner missive, fired off by the President on his social network,

  • to turn the White House's tussle with the Federal Reserve into something more worrying.

  • On August 25th, Donald Trump posted a letter saying he had fired Lisa Cook,

  • a Fed governor, for alleged mortgage fraud.

  • Although presidents can sack Fed officials, they can do so only for cause,

  • and none has used the power before.

  • Ms Cook has not been charged with a crime, let alone convicted of one.

  • The claim that she listed two homes

  • as her primary residence was first made by Bill Pulte of the Federal Housing Finance Agency,

  • who has made similar claims against others, none yet leading to legal charges.

  • Ms Cook has pledged to fight the firing in court and, in the meantime, to stay in her post.

  • The move is a remarkable escalation in Mr Trump's campaign against independent central banking.

  • The Fed was mostly peripheral in his first term,

  • occasional grumbles aside, but has become a bogeyman in his second.