(Radio Iowa) – Iowa Senator Chuck Grassley says he doesn’t know if President Trump has the power to remove a member of the Federal Reserve Board, though Trump said on social media Monday night he’s firing Fed Governor Lisa Cook, an unprecedented move. “I don’t know for sure whether he has the authority to do it,” Grassley says. “The courts are going to answer that question.” Cook is refusing to step down. Trump says he’s firing Cook because of allegations she committed mortgage fraud, though no charges have been filed. The Federal Reserve is a panel that traditionally operates independently from partisan politics, and if the firing is upheld in the courts, it could cause a critical disruption of financial markets.

Grassley, a Republican, says: “The U.S. Supreme Court has hinted, and I want to emphasize the word hinted, that it’s probably a little more difficult for the president to fire somebody from the Federal Reserve Board than it is anybody else in his or her administration.” Grassley, who serves on the Senate Finance Committee, says he voted against confirming Cook for the Fed position a few years ago on the basis of her financial policies. He describes Cook as a “loose money person,” and he notes the Fed essentially has two objectives which should carry equal weight.

“One is to prevent inflation, and the other one is to make sure there’s full employment,” Grassley says. “I voted against her because she would tip the scale to the employment part of it, and that is the Fed taking action on loose money, which then would breed further inflation.” The term “loose money” refers to the policy of broadening the supply of money as a way to boost growth in the economy and make it easier to take out a loan.

Cook is the first black woman to serve on the Fed’s board of governors. She was appointed by then-President Joe Biden in 2022.