After President Trump’s attempt to fire Federal Reserve Governor Lisa Cook, Groundwork Collaborative’s Chief of Policy and Advocacy Alex Jacquez reacted with the following statement:
“Far from furthering his goal of lower interest rates, Trump’s attacks on the Fed and nomination of political hacks to serve as board members will only erode confidence in U.S. markets, driving up interest rates and raising prices for families. He is firing anyone who gives him bad economic news while doing nothing to address rising costs, a weakening labor market, and slower economic growth.
“Trump’s illegal attempt to fire Fed Governor Lisa Cook is nothing more than politically motivated lawfare to cover up his own economic mismanagement.”
In addition, Groundwork senior advisor Kitty Richards recently published an op-ed on MSNBC.com warning Trump’s attacks on the independent federal agencies undermine our economy and democracy. She wrote:
“Whether through dismissals or pressure campaigns, the politicization of the institutions tasked with measuring and managing the economy will erode trust in American governance and markets. The Fed, in particular, draws its power to manage interest rates and inflation in part from trust: If investors and consumers begin to believe that the Fed will allow inflation to get out of control, these expectations can become a self-fulfilling prophecy, and interest rates will jump in response. If investors across the world no longer see the U.S. as the safest bet for their money, borrowing costs for the government, businesses and consumers will rise.”
“The harm here is real. The administration’s attacks on Powell and Cook put America’s entire economic foundation at risk — undermining global confidence, driving up costs for families and businesses and leaving lasting damage. They also send a chilling message: This administration is willing to use law enforcement to intimidate and punish anyone who doesn’t bend to its will, no matter what the consequences for ordinary Americans.”
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