The removal of a Fed Board member creates risks to U.S. institutional autonomy and signals resistance to the “technocratic approach”

On August 27, 2025, the White House announced the dismissal of Federal Reserve Board member Lisa Cook, and on August 28, U.S. Treasury Secretary Scott Bessent called for a review of the Federal Reserve’s functioning.

The dismissal of Lisa Cook from the Fed Board became the beginning of a fundamental process that the White House is using as leverage to undermine traditional institutional autonomy and as a signal to Jerome Powell that political logic must prevail over the “technocratic” approach of the Fed chair.

The legal conflict around Lisa Cook, who refused to resign and is ready to challenge the U.S. President’s decision, creates a precedent that may be decided by the Supreme Court and determine the limits of presidential powers in the financial sphere.