Paul Krugman: “Yesterday Donald Trump said that he had fired Lisa Cook, a member of the Federal Reserve Board of Governors… Cook has said that she will not resign.”
“So at this point the immediate onus is on Jerome Powell, the Fed chairman. He has the right — I would say the obligation — to say, ‘Show me the legal basis for this action.’ If Trump’s officials can’t provide that basis, he should declare that as far as he is concerned, Cook is still a Fed governor.”
“If Powell caves, or the Supreme Court acts supine again and validates Trump’s illegal declaration, the implications will be profound and disastrous. The United States will be well on its way to becoming Turkey, where an authoritarian ruler imposed his crackpot economics on the central bank, sending inflation soaring to 80 percent.”
Playbook: “The dilemma for the Fed is immediate… Do they treat her as fired or not?”
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