Trump launches probe into Federal Reserve Governor Lisa Cook

Donald Trump has set up a special committee tasked with investigating Federal Reserve Governor Lisa Cook, signalling his intention to push for her removal from the post. The committee's establishment represents a fresh attempt by the incoming U.S. administration to reshape the leadership of the Federal Reserve, the country's central banking institution.

Lisa Cook, who was appointed to the Federal Reserve Board in 2022, has previously faced criticism from Trump and his allies over monetary policy decisions and the Fed's independence. The establishment of the investigative committee suggests Trump plans to build a case for her dismissal once he assumes office.

The move aligns with Trump's broader push to exert greater control over the Federal Reserve, an institution traditionally insulated from political pressure. His administration has previously clashed with the Fed over interest rate decisions and economic policy direction.

Cook's position on the Federal Reserve Board carries significant influence over U.S. monetary policy decisions that have global economic ramifications. Her potential removal could signal a shift in the Fed's approach to inflation management and interest rates, developments that could have implications for emerging markets including India.