US President Donald Trump has reignited his bid to remove Federal Reserve (Fed) board of governors member Lisa Cook, just months after the US Supreme Court ruled against his authority to do so. The White House sent a letter to Cook on August 5, stating, "This notice is to inform you that the president is considering your removal from your current position." The letter, signed by White House deputy chief of staff Dan Scavino, initiates a process challenging the Fed's long-held independence.

This move marks the first time in the Fed's 111-year history that a US president has sought to remove one of its governors. During his second term, Trump has made several unprecedented efforts targeting the Fed's independence, including opening a criminal investigation into former Chair Jerome Powell and his ongoing pursuit to dismiss Cook.

The latest action follows a June ruling by the US Supreme Court, which determined that Trump does not have the authority to remove Fed governors "for any reason." The board of governors, the Fed's highest leadership body, comprises seven members responsible for setting monetary policy, overseeing banks, and ensuring national financial stability. Fed governors are appointed by the president and must be confirmed by the Senate, with the institution known for its ability to operate independently, free from political influence.

Following the June ruling, Trump reacted strongly on social media, vowing to take "immediate appropriate action" against Cook. The White House letter detailed the allegations against her, asserting that "this conduct demonstrates gross negligence and proves she is no longer fit for office." Cook has 21 days from the date of receiving the letter to respond to these allegations, which involve false statements in her mortgage loan applications. She has repeatedly denied the claims.

Citing the Supreme Court's ruling, which noted Trump had previously attempted to dismiss Cook without giving her an opportunity to respond to the allegations, the White House demanded she submit a written explanation by August 26.

Cook, the first Black woman to serve as a Fed governor, commented on the Supreme Court's earlier decision. She stated that the ruling reinforces a principle that has underpinned economic governance for generations: "The Fed must make all policy decisions based on independent evidence and assessment, free from political interference."

Democratic Senator Elizabeth Warren criticized the White House's action, remarking that it shows Trump is "once again trying to unlawfully control the US central bank." She declared that Democratic lawmakers will "fight to ensure he cannot achieve his goal."

Ha Thu (according to AFP)