Lisa Cook and the fight for the Fed

This Planet Money episode delves into the unprecedented situation of former President Trump's attempt to fire Federal Reserve Board of Governors member Lisa Cook, highlighting the potential threat to the Fed's independence. The hosts, Mary Childs and Sally Helm, explore the roles and responsibilities of the Fed governors, particularly their influence on interest rates through the Federal Open Market Committee (FOMC). Featuring insights from former governors Betsy Duke and Alan Blinder, the episode examines the historical norms of political neutrality within the Fed and the potential economic consequences, such as inflation and market instability, if political interference were to become the norm. The discussion also considers whether Trump's actions are primarily motivated by a desire to control interest rates or by a broader display of dominance, and how the Fed might respond to such challenges.