Paul Krugman: “Donald Trump is threatening to fire Lisa Cook, a member of the Federal Reserve’s Board of Governors, over allegations that she made false claims on mortgage applications before she went to the Fed.”

“I am not going to lead with a discussion of what Cook may or may not have done. That would be playing Trump’s game. Clearly, he’s just looking for a pretext to fire someone who isn’t a loyalist — and who happens, surprise, to be a black woman. If you write about politics and imagine that Trump cares about mortgage fraud — or for that matter believe anything Trump officials say about the affair without independent confirmation — you should find a different profession. Maybe you should go into agricultural field work, to help offset the labor shortages created by Trump’s deportations.”

“The real story here isn’t about Cook, or mortgages. It’s about the way the Trump administration is weaponizing government against political opponents, critics, or anyone it finds inconvenient.”

President Donald Trump said Friday he will fire Federal Reserve Governor Lisa Cook if she does not resign from her position, CNBC reports.

Said Trump: “What she did was bad.”

Bloomberg: “If Cook is forced off the Fed board, it would give Trump the chance to shape it in his favor and exert more influence over US monetary policy. The move would also strike at the heart of the central bank’s independence.”

“An opening would pave the way for four of the seven slots on the Fed’s board to be filled by Trump appointees.”

“Federal Reserve Chair Jerome Powell on Friday gave a tepid indication of possible interest rate cuts ahead as he noted a high level of uncertainty that is making the job difficult for monetary policymakers,” CNBC reports.

“Federal Reserve Governor Lisa Cook signaled her intention to remain at the central bank in defiance of calls for her resignation by President Donald Trump over allegations of mortgage fraud,” Bloomberg reports,

Said Cook: “I have no intention of being bullied to step down from my position because of some questions raised in a tweet.”

A new CNBC Fed Survey finds more think President Trump will tap his top economic advisor Kevin Hassett to be the next Federal Reserve chair.

But when asked who the president “should” pick, former Fed Governor Kevin Warsh took the top spot.

“Donald Trump has called on Federal Reserve governor Lisa Cook to resign, after one of his top allies in government called for an investigation into the central banker over alleged wrongdoing related to home mortgages,” the Financial Times reports.

“The White House is working over the August recess to build momentum for a key Federal Reserve nominee the administration wants in place next month,” Politico reports.

“Stephen Miran, whom President Donald Trump tapped to temporarily serve on the Federal Reserve’s board, has been meeting with members of the Senate Banking Committee, which will need to green-light his nomination before the full Senate can vote on confirmation.”

Treasury Secretary Scott Bessent is “calling for a ban on single-stock trading by members of Congress, a push that could supercharge legislative efforts to ban the practice that have gained momentum in recent months,” Politico reports.

President Trump said he may name the next Federal Reserve chair “a little bit early” and added that he was down to three or four potential candidates, Bloomberg reports.

Said Trump: “I’ll be naming a new chairman sometime within the next — I think I’ll name it a little bit early, the new chairman. I’m down to three or four names.”

“The Trump administration is considering 11 candidates to replace Federal Reserve Chairman Jerome Powell when his term expires in May, including three that have not previously been publicly named,” CNBC reports.

Treasury Secretary Scott Bessent told Bloomberg that interest rates are “too constrictive” and should likely be 150-175 basis points lower.

President Trump assailed David Solomon, the CEO of Goldman Sachs, saying the bank had made a “bad prediction” about the impact of his sweeping tariff agenda on markets and consumer costs, Bloomberg reports.

Said Trump: “They made a bad prediction a long time ago on both the Market repercussion and the Tariffs themselves, and they were wrong, just like they are wrong about so much else.”

He added: “I think that David should go out and get himself a new Economist or, maybe, he ought to just focus on being a DJ, and not bother running a major Financial Institution.”

President Trump on Tuesday threatened to allow a “major lawsuit” against Federal Reserve Chairman Jerome Powell to go forward, dramatically escalating his efforts to pressure the central bank leader to immediately lower interest rates, CNBC reports.

Said Trump: “The damage he has done by always being Too Late is incalculable. Fortunately, the economy is sooo good that we’ve blown through Powell and the complacent Board. I am, though, considering allowing a major lawsuit against Powell to proceed because of the horrible, and grossly incompetent, job he has done in managing the construction of the Fed Buildings.”

Rogé Karma: “The uncomfortable fact about its historic run is that no one is sure why it’s happening—or what could bring it to an end.”

Days after the administration confirmed plans to start selling the government’s stakes in mortgage giants Fannie Mae and Freddie Mac, President Trump suggested they might be combined and trade as “MAGA,” Axios reports.

Wall Street Journal: “It isn’t unusual for Fed governors to leave before their terms expire. But Kugler’s departure came as a surprise to her colleagues because she had recently been engaged in conversations about pending business before the central bank’s board, including matters that they expected would carry into January.”

“President Trump’s team is reviewing new contenders to be the next chairman of the Federal Reserve, with a longtime economic consultant and a past Fed president added to the list,” the Wall Street Journal reports.

“About 10 people are under consideration for the job.”