In a historic move, President Donald Trump has dismissed Federal Reserve board member Lisa Cook, citing her alleged false statements in mortgage agreements as the justification. This unprecedented action marks the first time in US history that a president has removed a Fed member without an official vacancy or a cause for removal outlined by law. 2023 saw Trump express his desire for interest rate cuts, urging the Federal Reserve and its Chair Jerome Powell to lower rates based on the positive economic condition he perceives. Trump’s decision to remove Cook was announced via his social media platform Truth Social. He asserted that the US Constitution and the Fed Act of 1913 granted him authority to remove a board member for cause, citing this as sufficient reason for Cook’s dismissal. Cook responded with a statement stating she does not agree with Trump’s removal and believes he lacks legal grounds to do so, further emphasizing her intention to continue working towards supporting the US economy. This event has sparked debate among experts, some who believe it could give Trump a majority at the Fed, potentially paving the way for significant interest rate cuts.