Trump’s Effort to Remove Fed Governor Raises Concerns About Central Bank Leadership

U.S. President Donald Trump attempted to remove Federal Reserve Governor Cook this week, igniting concerns over potential shifts in the central bank’s leadership and leading calls for interest rate cuts. IMF First Deputy Managing Director Gita Gopinath acknowledged a relatively stable market response, but noted, “The market still seems confident that the Fed will remain independent in setting monetary policy, particularly regarding operational autonomy. However, I believe this situation warrants closer scrutiny as it presents a deeper concern than current markets reflect.”