Donald Trump’s move to fire Federal Reserve Governor Lisa Cook has marked a dramatic escalation in his effort to control the US central bank — in a step that puts the institution’s independence at risk.For months, the US leader has been calling for the bank to slash interest rates, lashing out repeatedly at Fed Chair Jerome Powell for being “too late” and calling him a “moron.”But policymakers have been holding rates steady as they monitor the effects of Trump’s wide-ranging tariffs on inflation.By ousting Cook, the president could potentially add another voice to the Fed’s board to try and shift interest rates in his favored direction.After calling for her resignation last week, Trump posted a letter on his Truth Social platform Monday evening, saying she was fired “effective immediately.”He cited allegations of false statements on her mortgage agreements, saying: “I have determined that there is sufficient cause to remove you from your position.”Trump told reporters Tuesday that Cook “seems to have had an infraction,” saying “we need people that are 100 percent above board.”But Cook on Tuesday rejected Trump’s unprecedented bid to remove her, saying he had no legal authority to do so.”I will not resign,” said Cook, the first Black woman to serve on the central bank’s board.”President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so,” she added.Cook’s attorney Abbe Lowell added: “We will be filing a lawsuit challenging this illegal action.”A Fed spokesperson said the central bank “will abide by any court decision.” The official noted that Cook was seeking a judicial decision that would confirm her ability to keep honoring responsibilities as a Fed governor.The spokesperson stressed that long tenures and removal protections for governors are “a vital safeguard,” but did not provide further details on Cook’s status before the court outcome.Among the alleged false statements was that Cook had claimed two primary residences, one in Michigan and another in Georgia.Cook has not been charged with a crime and the alleged incidents occurred before she was in her current position.- Independence eroded? -The potential legal dispute would be the latest test of presidential powers under Trump’s new term, with the 79-year-old Republican — backed by loyalists throughout the government — forcefully moving to exert executive authority.But even as the Supreme Court’s conservative majority recently allowed Trump to fire members of other independent government boards, it created a carveout for the Fed in its ruling.Federal law says that Fed officials can only be removed for “cause,” which could be interpreted to mean malfeasance or dereliction of duty.Fed independence from the White House “is being eroded,” said David Wessel, a senior fellow in economic studies at Brookings.He told AFP that Trump appears to be trying to get a majority on the Fed’s board, in an effort to lower interest rates.But Wessel warned: “History tells us that when politicians control the central bank, the inevitable consequence is higher inflation and financial instability.”The Fed’s credibility as an inflation-fighter will be questioned, he said, cautioning that global investors will demand a premium on US Treasury debt as a result.- Consequences -For now, Oxford Economics senior US economist Matthew Martin expects that even if Cook’s removal could tip the scale in favor of lower interest rates, Fed decisions are still voted upon by 12 officials.But a Fed that “answers to the whims of an administration” draws more investor wariness, he added.”Despite lower short-term interest rates, long-term interest rates would rise for the US government, households, and businesses — increasing their borrowing costs,” Martin said.The Fed has held interest rates at a range between 4.25 percent and 4.50 percent this year.Besides Cook, Trump has recently suggested that what he called an overly costly renovation of the Fed’s headquarters could be reason to oust Powell, before backing off the threat.Meanwhile the president has picked Stephen Miran, the leader of his White House economic panel, to fill a recently vacated seat on the Fed’s board.Cook took office as a Fed governor in 2022 and was reappointed to the board in 2023.

Meta is launching a political action committee in California to support candidates who favor lighter regulation of artificial intelligence in the state that is home to Silicon Valley.The tech world powerhouse on Tuesday confirmed plans for a super-PAC called Mobilizing Economic Transformation Across California dedicated to backing pro-AI candidates regardless of party affiliation.”As home to many of the world’s leading AI companies, California’s innovation economy has an outsized impact on America’s economic growth, job creation, and global competitiveness,” a Meta spokesperson told AFP.”But Sacramento’s regulatory environment could stifle innovation, block AI progress, and put California’s technology leadership at risk.”According to Meta, state-level regulation of AI threatens to hamper development of the technology at a time when US tech firms are in a fierce innovation race with Chinese rivals.The tech industry is lobbying hard to avoid regulation of AI’s development, and in July it narrowly failed to win a federal ban by US Congress that would have prevented states from passing or enforcing AI laws for as long as a decade.Meta pointed to the more than 50 AI-related bills that have been introduced this year in California alone, many of which could hinder advancement of the technology, the company claimed.One such law, which will be effective on January 1, requires developers of generative AI with large user bases to disclose summaries of training data, provide free AI detection tools, and ensure clear labeling of AI-generated content. 

A federal judge on Tuesday tossed out a lawsuit filed by the Trump administration against other judges and rebuked the White House for attacks on the judiciary.District Judge Thomas Cullen, who was appointed by President Donald Trump during his first term, dismissed the unusual suit brought by the Justice Department against all of the 15 federal district judges in Maryland.The Trump Justice Department filed suit after the chief district judge in the eastern state issued a standing order requiring the government to give undocumented migrants facing expulsion 48 hours to contest their removal.Instead of appealing the order to a higher court, the Justice Department took the extraordinary step of suing the 15 district judges in Maryland, accusing them of “judicial overreach.”Cullen, who normally sits in a district in Virginia, was brought in to hear the case since the federal district judges in Maryland were defendants.In a scathing 37-page ruling against the Justice Department, he said suing federal judges was a “novel and potentially calamitous” approach.”If the Executive truly believes that Defendants’ standing orders violate the law, it should avail itself of the tried-and-true recourse available to all federal litigants: It should appeal,” he said.Cullen also had harsh words for White House attacks on the judiciary. For months, administration officials “have described federal district judges across the country as ‘left-wing,’ ‘liberal,’ ‘activists,’ ‘radical’ … ‘rogue,’ ‘unhinged’ … and worse,” the judge said.”Although some tension between the coordinate branches of government is a hallmark of our constitutional system, this concerted effort by the Executive to smear and impugn individual judges who rule against it is both unprecedented and unfortunate,” he added.Trump, the first convicted felon to serve in the White House, has a history of attacking the judges who presided over his civil and criminal cases.Since his return to office in January, Trump has launched fierce attacks on judges who have ruled against his executive orders or blocked his efforts to deport migrants and slash the federal workforce.In March, Supreme Court Justice John Roberts issued a rare public rebuke of the Republican president over his call for the impeachment of a federal judge.”For more than two centuries, it has been established that impeachment is not an appropriate response to disagreement concerning a judicial decision,” Roberts said. “The normal appellate review process exists for that purpose.”

Pop superstar Taylor Swift and American football player Travis Kelce announced their engagement on Tuesday, setting the stage for a high-profile wedding for one of the world’s biggest celebrity couples.A joint post on their Instagram pages showed pictures of Kelce down on one knee making his marriage proposal in a flower-laden garden, and then Swift displaying a large diamond ring.”Your English teacher and gym teacher are getting married,” the pair, both aged 35, joked in a caption.The couple first went public with their relationship in 2023, and their love story has been broadcast on some of the world’s biggest stages. The pair have appeared together at her hugely popular concerts and at his NFL games playing for the Kansas City Chiefs.US President Donald Trump was among the first to publicly congratulate the star couple, despite earlier bad blood with Swift over her endorsement of his opponent Kamala Harris in last year’s US election.”I wish them a lot of luck,” he told reporters at a cabinet meeting, when asked about the engagement.Celebrities flocked to congratulate the pair, including from the worlds of music and sport.”Awww huge congratulations,” wrote singer Avril Lavigne, on Instagram.”Two of the most genuine people meet and fall in love. Just so happy for these two,” wrote Brittany Mahomes, the wife of Kelce’s quarterback teammate Patrick Mahomes.Last year, Swift closed her acclaimed $2 billion Eras tour that shattered records and made her the world’s leading music star as she performed 149 three-hour shows around the globe.Tickets sold for exorbitant prices and drew in millions of fans, with many who didn’t get in willing to sing along outside venues.Swifties — as her fans are known — are anxiously waiting for her twelfth studio album “The Life of a Showgirl,” to be released on October 3.- ‘Terrific’ -News of the album came this month in an episode of Kelce’s “New Heights” podcast, which he hosts with his brother Jason, a former NFL player.The two hour-plus episode covered topics from how Swift felt after gaining control of her master recordings to her love of bread baking. It showcased playful dynamics between the two, and set a record 1.3 million concurrent views on YouTube, Guinness World Records said.The 14-time Grammy winner’s last major release, “The Tortured Poets Department” came out in April last year.Though Swift is famed for singing about heartbreaks with her exes, her relationship with Kelce, one of the NFL’s most bankable players, has deepened despite the pressures of fame.Kelce has been a major sports star for years, but his relationship with Swift has propelled him to a new level of international interest that a wedding is set to intensify.He kicks off his thirteenth season with the Chiefs next week, with speculation that it may be his last as he pursues other entertainment endeavors.Kelce has won three championship titles with the Chiefs, and is seeking an elusive fourth after coming up short in last season’s Super Bowl against the Philadelphia Eagles.Both Swift and President Trump were in attendance at the major sporting event, sparking much commentary after the Republican billionaire declared “I HATE TAYLOR SWIFT” following her endorsement of Harris.”I think he’s a great guy. I think that she’s a terrific person, so I wish them a lot of luck,” Trump said Tuesday.