Donald Trump is trying to do something no American president has ever done: fire a sitting governor of the Federal Reserve for political reasons.
His target is Lisa Cook, the first Black woman ever confirmed to the Fed’s Board of Governors. She has made clear she will not resign and is preparing to sue, declaring: “Trump has no authority to fire me. I will continue to carry out my duties.”
This fight is not just about one job in Washington. This is about whether America’s economy is run by law or by the whims of one man.
The Federal Reserve is not some abstract group of economists in marble hallways; its decisions touch every household in America. When the Fed raises or lowers interest rates, that decides whether your mortgage will be more expensive, whether you can refinance student loans or whether credit card debt eats up your paycheck.
When the Fed tackles inflation, it determines the costs of your groceries, gas and rent.
Since its creation in 1913, the Federal Reserve has been independent from the White House. That independence is no accident. Congress designed it that way to prevent presidents from manipulating interest rates to juice their re-election chances.
When past presidents have leaned on the Fed, the results have been disastrous. Richard Nixon pressured the Fed to keep rates low in the early 1970s to help his re-election and Americans paid the price with runaway inflation that haunted the economy for a decade.
Now, Trump is not only trying to undermine Fed independence; he is trying to erase it altogether.
Let’s be clear: The fact that Trump’s first move is to single out Lisa Cook is no coincidence. It is intentional. Cook’s historic confirmation to the Fed was hard-won, over a bruising confirmation battle in which some of the ugliest racist and sexist attacks were leveled at her credentials.
She is an economist who has published pathbreaking work on innovation, violence and economic growth. Her very presence on the Fed represents both progress and a challenge to the old guard.
Trump has a long history here. He built his political career by demonizing Black people and communities — from demanding the death penalty for the Central Park Five (who were later exonerated) to pushing the racist “birther” lie about former President Barack Obama to sending National Guard troops to police Washington, D.C. He has repeatedly targeted Black women in power during his presidency, from congresswomen such as Maxine Waters and Jasmine Crockett, to journalists such as April Ryan, Abby Phillip and Yamiche Alcindor (NBC News’ White House correspondent).
When he targets Lisa Cook, he is using the same playbook: target a Black woman to send a message about who belongs in power and who does not.
The story does not end with Cook. Trump has also announced that the federal government will begin taking ownership stakes in private companies. Intel is first, and the Pentagon is considering buying into defense contractors.
It is true the U.S. government has taken equity stakes before — specifically in banks and automakers during the 2008 financial crisis, but those were temporary, bipartisan rescue packages. Trump is signaling he wants to make it permanent.
Think about that: the president of the United States not just regulating industries, but owning them. That is not free enterprise. That is not an independent market. The American government is an extension of Trump’s business enterprise.
So yes, this is about Lisa Cook’s job, but it is also about your job. Your mortgage. Your retirement account. Your savings. It is about whether a president can remake the American economy as a personal fiefdom while getting rid of anyone who dares to stand in his way.
Lisa Cook is standing her ground. The rest of us must do so as well.
For more thought-provoking insights from Michael Steele, Alicia Menendez and Symone Sanders-Townsend, watch “The Weeknight” every Monday-Friday at 7 p.m. ET on MSNBC.
This article was originally published on MSNBC.com
