President Donald Trump’s attempt to remove Federal Reserve Governor Lisa Cook has raised alarms about potential political interference in US monetary policy. Trump accused Cook of lying on mortgage applications, leading to her refusal to step down and a clash over legal authority that could potentially destabilize markets. Experts warn this fight could pose severe threats, including jeopardizing the Fed’s independence, diminishing investor trust, weakening the dollar, and even triggering a recession. Trump’s past clashes with the Fed and recent political pressure have amplified these concerns. Cook, appointed by President Joe Biden in 2022 and serving until 2038, countered that Trump lacks legal grounds to fire her. The firing has sparked fears of politicized monetary policy, potentially damaging market stability and investor confidence. This incident marks the latest conflict between Trump’s agenda and the independent Fed, adding a significant twist to the US economy.