By T‑Paine
Published: 08-30-2025
When Donald Trump set his sights on Federal Reserve Governor Lisa Cook, he didn’t pick her name out of a hat. Cook is the first Black woman to ever serve on the Fed’s Board of Governors — and, more importantly, one of the few voices inside the institution consistently emphasizing the realities of ordinary workers, racial inequality, and economic participation beyond Wall Street.
Trump knows the symbolism. By going after Cook, he sends a signal to his base that Black leadership in the nation’s highest economic office is illegitimate. But there’s another calculation here: consolidating control of the Fed. If Trump can push out a respected economist like Cook, he can replace her with a loyalist more willing to follow his political agenda — including lowering interest rates before an election, inflating asset bubbles, and handing the bill to working people when it all collapses.
This isn’t new. Authoritarians throughout history have tried to bend central banks into political weapons. In the 1930s, European fascists gutted financial independence to bankroll military expansion. In the 1970s and ’80s, dictatorships in Latin America purged technocrats and installed cronies to grease the gears of austerity. The result was always the same: short-term gains for the ruling elite, long-term devastation for workers.
That’s what’s on the line now. The Fed isn’t some abstract ivory tower; its decisions directly affect your rent, your job security, and whether wages can keep up with prices. If Trump succeeds in politicizing it — and in purging members like Lisa Cook — working people will be the first to suffer.
It’s easy to think the Federal Reserve is some abstract, distant institution — all suits and calculators, detached from the “real world.” But every rate hike, every bond purchase, every inflation forecast trickles down directly to your life.
When the Fed raises interest rates, your rent can rise. Your mortgage, your credit card debt, your student loans — all of it becomes more expensive. When the Fed keeps rates artificially low, it inflates asset prices: housing, stocks, and cryptocurrencies go up, but wages barely budge. The result? The rich get richer, and working people are left paying more for less.
Lisa Cook isn’t just a governor; she’s a voice pushing the Fed to recognize systemic inequities. She’s studied how racial and gender inequality intersect with monetary policy, how certain communities are excluded from economic growth, and how ordinary Americans are disproportionately punished by inflation and recessions. Removing her from the Board isn’t just symbolic — it’s a move to silence a perspective that protects working people.
Historically, when central banks lose independence, ordinary citizens pay. In Latin America during the 1980s debt crises, governments installed loyalists to central banks who prioritized payments to foreign creditors over domestic well-being. Entire generations faced unemployment, hyperinflation, and austerity while the elite profited. The lesson is clear: when the Fed is politicized, inequality grows.
Trump’s strategy is subtle. By targeting Cook, he appeals to his base with coded signals — race, gender, and loyalty — while consolidating control over the levers that shape the national economy. It’s not just politics; it’s power over your paycheck, your rent, your future.
Cook’s potential ouster is part of a broader trend: centralized economic power falling into partisan hands. The Federal Reserve isn’t supposed to respond to political whims. Its independence is what keeps it from printing money to cover campaign promises or bending policy to favor one sector over another. But every loyalist appointed, every dissenting voice silenced, chips away at that independence.
Trump’s base may cheer at the idea of shaking up “the deep state,” but they’re missing the point. The deep state they’re attacking includes financial oversight, economic safeguards, and independent judgment — all designed to keep everyday people from being steamrolled by the wealthy and powerful. Removing Cook or other independent voices doesn’t just affect interest rates; it reshapes the balance of power in the economy, giving the wealthy more leverage to dictate policy at the expense of everyone else.
For Labor Day, this is a crucial lesson. While parades and BBQs celebrate the achievements of workers, the institutions that determine economic fairness are under attack. The Federal Reserve is as important to the labor movement as unions, strikes, and collective bargaining — perhaps more so, because its decisions affect millions simultaneously, silently, and irreversibly.
What can you do? Stay informed. Follow the appointments and votes. Speak up when independent voices like Lisa Cook are threatened. The economy isn’t an abstract game — it’s your life, your community, your family’s future. Let this Labor Day be a reminder that defending economic justice is as critical as celebrating labor itself.