Business
What Is The Federal Reserve And Why Trump Removed Its Governor
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“Trump’s unprecedented removal of US Federal Reserve Board Governor Lisa Cook comes amid his criticism that the central bank’s high interest rates hurt his economic agenda
If Trump succeeds in removing Lisa Cook, he will be able to nominate her successor, potentially reshaping the Fed’s governing board for the next several years. (AP/File)
President Donald Trump on Monday abruptly removed Lisa Cook from her position as a governor of the US Federal Reserve Board, effective immediately. Cook, who has not faced any accusations or convictions, said her dismissal lacks legal justification and confirmed she has no intention of resigning.
This unprecedented move by Trump comes amidst his outspoken criticism of the Federal Reserve for not reducing interest rates, which he believes undermines his efforts to strengthen the US economy.
Cook, the first black woman to serve as a Fed governor, stated, “President Trump attempted to dismiss me ‘with reason’, while there is no such reason under the law. He has no right to do so.” She affirmed, “I will not resign. I will continue to perform my duties to help the US economy, as I have been doing since 2022.”
Cook, who was appointed by former President Joe Biden, has engaged high-profile lawyer Abbe Lowell to represent her. Cook previously held positions at the US Treasury and the White House under former President Barack Obama.
Lowell commented, “President Trump has once again resorted to social media to ‘attack via tweet’ and once again his threatening response is flawed. His demands lack any due process, basis, or legal authority.” He emphasised, “We will take whatever action is necessary to stop his illegal action.”
He said that Cook plans to file a lawsuit challenging her dismissal. A Federal Reserve spokesman did not immediately comment on Trump’s letter.
This episode could lead to a prolonged legal battle, with significant stakes including the credibility of the US dollar as the world’s safe currency.
The Federal Reserve And Its Board of Governors
The US Federal Reserve comprises 12 reserve banks, each with a president, and a seven-member board of governors. The Fed has five key roles: conducting US monetary policy, promoting financial system stability, supervising and regulating financial institutions, promoting the safety and efficiency of payment and settlement systems, and promoting consumer protection and community development.
The Board of Governors, an agency of the US federal government, plays a crucial role in guiding the operations of the Federal Reserve System and overseeing the reserve banks. Its members are nominated by the President and confirmed by the Senate, but the board reports to and is directly accountable to Congress.
Allegations Against Cook
Trump has accused Cook of making false statements regarding loans on two houses in 2021.
He wrote, “For example, as detailed in the criminal referral, you signed a document certifying that a property in Michigan would be your primary residence for the next year.”
He continued, “Two weeks later you signed another document for a property in Georgia, stating that it would be your primary residence for the next year.”
Trump claimed that it is unthinkable that Cook was not aware of her first commitment when she made the second.
He concluded, “Given your deceptive and potentially criminal conduct in financial matters, the American people cannot trust your honesty and neither do I. At a minimum, this conduct demonstrates gross negligence in financial transactions, which calls into question your qualifications and credibility as a financial regulator.” Interest rates on loans for houses designated as primary residences in the US are low.
Legality Of Trump’s Move
Under the Federal Reserve Act, each member holds office for a term of fourteen years from the expiration of their predecessor’s term, unless removed earlier by the president for cause. ‘Cause’ typically means misbehaviour or incapacity while in office.
Trump stated, “I have found that sufficient cause exists to remove you from office.”
In a statement issued through her lawyers, Cook maintained that Trump had attempted to fire her without any legal cause or authority. Questions arise whether Cook can be fired while the investigation is pending and if Trump has sufficient evidence to claim ’cause.’
Historically, the US central bank has been shielded from direct political actions, and the US Supreme Court indicated this May that it is willing to provide broader protections to Fed governors.
The court stated, “The Federal Reserve is a uniquely structured, quasi-private entity that follows the distinguished historical tradition of America’s First and Second Banks.”
Potential Outcome If Cook Is Removed
If Trump succeeds in removing Cook, he will be able to nominate her successor, potentially reshaping the Fed’s governing board for the next several years. Fed governors typically serve 14-year terms. Two of the current seven governors, Christopher Waller and Michelle Bowman, were appointed by Trump. Trump appointed Jerome Powell as the chairman of the Federal Reserve in 2017.
As of Monday, the Board of Governors had six members, including Cook, with one seat vacant following Adriana Kugler’s resignation earlier this month. Trump has nominated Stephen Miran, chairman of the Council of Economic Advisors, to fill Kugler’s place. If Miran’s appointment is confirmed by the Senate and Trump succeeds in removing Cook and appointing her successor, Trump will secure a 4-3 majority on the board.
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The Eli Lilly logo appears on the company’s office in San Diego, California, U.S., Nov. 21, 2025.
Mike Blake | Reuters
Eli Lilly on Monday said it is lowering the cash prices of single-dose vials of its blockbuster weight loss drug Zepbound on its direct-to-consumer platform, LillyDirect, building on efforts by the company and the Trump administration to make the medicine more accessible.
The announcement also comes weeks after chief rival Novo Nordisk unveiled additional discounts on the cash prices of its obesity and diabetes drugs.
Starting Monday, cash-paying patients with a valid prescription can get the starting dose of Zepbound vials for as low as $299 per month on LillyDirect, down from a previous price of $349 per month. They can also access the next dose, 5 milligrams, for $399 per month and all other doses for $449 per month, down from $499 per month across those sizes.
Zepbound carries a list price of roughly $1,086 per month. That price point, and spotty insurance coverage for weight loss drugs in the U.S., have been significant barriers to access for some patients.
Eli Lilly’s announcement comes just weeks after President Donald Trump inked deals with Eli Lilly and Novo Nordisk to make their GLP-1 drugs easier for Americans to get and afford. The agreements will cut the prices the government pays for the drugs, introduce Medicare coverage of obesity drugs for the first time for certain patients and offer discounted medicines on the government’s new direct-to-consumer website launching in January, TrumpRx.
But Eli Lilly’s deal with Trump centers around lowering the prices of a different form of Zepbound – a multi-dose pen – after it wins Food and Drug Administration approval.
That means Eli Lilly’s Monday announcement around cutting prices on the existing single-dose vials could allow more patients to get discounted treatments more quickly.
“We will keep working to provide more options — expanding choices for delivery devices and creating new pathways for access — so more people can get the medicines they need,” said Ilya Yuffa, president of Lilly USA and global customer capabilities, in a statement.
Eli Lilly’s stock, which has climbed more than 36% this year, fell nearly 2% on Monday. Its meteoric rise due to the success of Zepbound and its diabetes injection Mounjaro vaulted it to becoming the first health-care company to hit a $1 trillion market value last month. Though cutting prices means lower revenue per medication sold, Eli Lilly’s sales — and shares — have continued to soar through past pricing announcements as demand balloons.
With single-dose vials, patients need to use a syringe and needle to draw up the medicine and inject it into themselves. Eli Lilly first introduced that form of Zepbound in August 2024.
It’s unclear how many patients are currently using single-dose vials of Zepbound. But Eli Lilly previously said that direct-to-consumer sales now account for more than a third of new prescriptions of Zepbound.
Novo Nordisk earlier this month lowered the price of its obesity drug Wegovy and diabetes treatment Ozempic for existing cash-paying patients to $349 per month from $499 per month. That excludes the highest dose of Ozempic.
The company also launched a temporary introductory offer, which will allow new cash-paying patients to access the two lowest doses of Wegovy and Ozempic for $199 per month for the first two months of treatment.
The chairman of the Office for Budget Responsibility (OBR) has resigned over the early publication of the watchdog’s forecasts.
Richard Hughes said he was resigning to allow the OBR to “quickly move on from this regrettable incident”.
His resignation follows publication of a report that described the leak as “the worst failure in the 15-year history of the OBR” and strongly criticised the watchdog’s processes for protecting sensitive information.
In a letter to the Chancellor and the chairwoman of the Commons Treasury Committee, Mr Hughes said he took “full responsibility” for “the shortcomings identified in the report”.
He said: “By implementing the recommendations in this report, I am certain the OBR can quickly regain and restore the confidence and esteem that it has earned through 15 years of rigorous, independent economic analysis.”
Mr Hughes has served as chairman of the OBR since 2020 and was reappointed to the job for a second five-year term in July this year.
Speaking in the Commons as the news of the resignation broke, Chief Secretary to the Treasury James Murray offered the Government’s thanks to Mr Hughes “for his dedication to public service”.
Later, the Chancellor herself offered her thanks for Mr Hughes’ “many years of public service”, adding: “This Government is committed to protecting the independence of the OBR and the integrity of our fiscal framework and institutions.”
Conservative leader Kemi Badenoch accused the Chancellor of using Mr Hughes as a “human shield” and called on Rachel Reeves to resign.
Liberal Democrat Treasury spokeswoman Daisy Cooper said Mr Hughes was “a dedicated public servant” who had “rightly taken responsibility for a failure on his watch”, adding the OBR needed to learn from its “catastrophic error”.
Treasury Committee chairwoman Dame Meg Hillier also thanked Mr Hughes, saying: “I commend his decision to take full responsibility for the incident and I wish him well for the future.”
The Treasury said it would begin the process of finding a replacement for Mr Hughes “in the coming weeks”.
The OBR launched an investigation after official forecasts were uploaded to the watchdog’s website, releasing details of the Budget almost an hour early.
In a report published on Monday, the OBR said the leak had been “seriously disruptive to the Chancellor, who had every right to expect that the (forecasts) would not be publicly available until she sat down at the end of her Budget speech”.
Noting Mr Hughes had already “rightly” apologised for the leak, the report said it was “not a case of intentional leakage” or a matter of pressing publish too early.
The OBR said it was caused by two errors linked to the WordPress publishing site it used.
The report into the incident said that, while it knew web addresses for its files follow a pattern, it assumed “the protections provided” by WordPress “would ensure it could not be accessed”.
But two configuration errors were the technical causes of the premature access.
The forecast for the last spring statement in March was also “accessed prematurely” on one occasion, the report noted, but concluded that no activity appeared to have been taken as a result and the most likely explanation is “benign”.
The report recommended a review of the watchdog’s processes for publishing such documents.
“To rebuild trust, the leadership of the OBR must take immediate steps to change completely the publication arrangements for the two important and time-sensitive documents containing the results of its biannual forecasts that it publishes in a normal year, and review arrangements for all other publications,” the report said.
One option would be for the watchdog to use the Government’s digital architecture but publish when it wants.
Another would be to have the Treasury publish the forecasts for the Budget and spring statement, but this would only work if safeguards for “real and perceived independence” could be put in place.
There may need to be an interim solution, the report noted, but said new arrangements must be in place in time for the next statement in spring 2026.
The Oil and Gas Regulatory Authority (OGRA) has approved a fresh increase in the price of liquefied petroleum gas (LPG), raising the cost for both domestic consumers and commercial users.
According to the notification issued, the LPG price has been increased by Rs7.39 per kilogram, setting the new rate at Rs209 per kg for December. As a result, the price of a domestic LPG cylinder has risen by Rs87.21, bringing the new price to Rs2,466.10.
In November, the price of LPG stood at Rs201 per kg, while the domestic cylinder was priced at Rs2,378.89.
The latest price hike is expected to put additional pressure on households already grappling with rising living costs nationwide.
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Eli Lilly cuts cash prices of Zepbound weight loss drug vials on direct-to-consumer site
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