President Trump’s attempt to fire Federal Reserve Governor Lisa Cook is a major escalation in the march toward American autocracy—and could have ruinous economic consequences.

Federal Reserve governors, like Lisa Cook, are essential regulators of the U.S. economy. Their responsibility under long-established law is to leverage their unique expertise and institutional independence to make crucial economic decisions for the long-term well-being of the American economy and the American people. Decisions that are good for the American economy may not always be good for politicians, which is why Congress made the Fed independent from partisan politics and protected Fed governors from removal. 

Manufacturing blatantly pre-textual allegations is not a real cause for dismissal. If the courts uphold the President’s authority to fire economic regulators for any reason — even a pre-textual one—the guardrails that protect the stability of the markets will disappear.

The Trump Administration’s latest attempt to strong-arm the Fed is a well-known authoritarian tactic, and such power grabs come at the expense of their country’s economy and people. 

For example: 

• When Recep Tayyip Erdoğan tried to strong-arm Turkey’s central bank into submission, the currency’s value plummeted 400 percent. 
• When Hugo Chavez took over Venezuela’s central bank in 2007, inflation rose 2 MILLION percent. If that happened in the U.S. tomorrow, a dozen eggs would cost $118,005.90.
• Under the dictatorship of Robert Mugabe, Zimbabwe experienced severe hyperinflation that crippled its currency and led to record-high unemployment, stagnant wages, and food shortages.

Congress made the Federal Reserve independent to avert such catastrophes. Like his broader assault on independent agencies, President Trump’s attempt to seize control of the Fed threatens the separation of powers and the health and stability of the U.S. economy.     

Much is at stake. All of us must do our part to stand up for American democracy and the rule of law. 

The Supreme Court should make clear that it meant what it said when it signaled, just a few months ago, that it would protect the independence of the Fed. And Congress, the business community, and the American people should insist that the current President do what every other President in U.S. history has done until now: respect the independence of a 112-year-old institution that has played an indispensable role in making the United States the most successful economy in the history of the world.