Treasury Secretary Scott Bessent publicly supported Trump August 26, 2025 firing of Fed Governor Lisa Cook during televised Cabinet meeting, marking first Treasury Secretary endorsement of political interference in Federal Reserve operations in modern history.

Trump firing represents unprecedented assault on Fed independence in 112 years—no president has ever attempted to remove Fed governor for political reasons, threatening central bank credibility that protects Americans from inflation and economic manipulation.

Cook serves 14-year term until 2038 and denies mortgage fraud allegations, with legal experts calling claims pretextual for Trump goal of gaining Fed control to force interest rate cuts that benefit his political agenda over economic stability.

Bessent manages $10 billion through Key Square Group hedge fund while simultaneously coordinating Treasury-Federal Reserve policy, creating massive conflict of interest where his personal investments benefit from destroying Fed independence.

Federal Reserve Act allows presidential removal only for cause, not policy disagreements—legal battle could reach Supreme Court with implications for presidential authority over all independent agencies including SEC, EPA, and FDIC.

Cook legal team includes ALAbbe Lowell, high-profile attorney challenging removal in federal court where she requests temporary restraining order to maintain Fed position pending full legal review of presidential authority.

Market analysts warn politically controlled Fed historically causes inflation disasters—1970s stagflation under Nixon pressure on Fed Chair Arthur Burns shows dangers of presidential interference in monetary policy decisions.

Treasury Secretary traditional role involves respecting Fed independence to maintain market confidence, but Bessent public support for political firing undermines institutional separation protecting financial system stability.