Lisa Cook can stay on at the Fed — for now

Summary

Marketplace Morning Report — Episode Summary

Title: Lisa Cook can stay on at the Fed — for now
Date: September 10, 2025
Host: David Brancaccio
Contributors: Nancy Marshall Genzer, Jana Rose Schleiss

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Overview

This episode covers two major economic stories: the court decision allowing Federal Reserve Governor Lisa Cook to remain in her position despite President Trump’s attempt to remove her, and the drivers behind record-high U.S. electric bills. Additionally, a brief mention of international market reactions and lighter news round out the program.

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Key Discussion Points and Insights

1. Legal Battle Over Federal Reserve Governance

Segment Starts: 01:02

• Background: President Trump attempted to remove Fed Governor Lisa Cook, citing mortgage fraud.

• Court Ruling: U.S. District Court Judge Gia Cobb issued a preliminary injunction preventing Cook’s removal while legal appeals continue.

  • Legal Reasoning: The Federal Reserve Act stipulates that governors can only be removed “for cause,” referring strictly to misconduct during their term, not before. Cook's alleged mortgage-related issues occurred before her tenure on the Board (“She’s denied committing mortgage fraud.” – Nancy Marshall Genzer, 01:48).
  • Quote: “Cook, quote, made a strong showing that her dismissal would violate the Federal Reserve Act.” (Nancy Marshall Genzer, 01:48)
  • Fed Independence: The ruling was praised for “recogniz[ing] and reaffirm[ing] the importance of safeguarding the independence of the Federal Reserve.” (Statement from Cook’s legal team, 02:19)
  • White House Stance: The Trump administration insists President Trump “lawfully removed Lisa Cook for cause and quote, this ruling will not be the last say on the matter.” (Nancy Marshall Genzer, 02:30)

• Upcoming Fed Meeting: Unless circumstances change, Cook will attend next week’s Fed’s two-day rate-setting meeting. (02:19)

• Fed Vacancy: The administration is pushing to fill another Board seat with economic adviser Stephen Myron, with a Senate Banking Committee vote scheduled for today. (02:56)

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2. International Markets and Geopolitical News

Segment Starts: 03:10

• Warsaw Stock Exchange: The key index dropped 1.3% following Poland shooting down Russian drones that entered its airspace—marking the first NATO engagement against Russian assets since the Ukraine conflict began.
• Trade Pressure: Trump called on China and India to levy 100% tariffs on Russian imports to pressure Russia over Ukraine.

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3. Surge in U.S. Electric Bills

Segment Starts: 05:17

• Overview: U.S. electric bills hit a record high, with $29 billion in rate increases in just the first half of 2025 (Powerlines, a consumer advocacy group).

• Key Drivers:

  • Expanding demand from data centers.
  • Investments in new power plants.
  • Upgrading and repairing aging infrastructure (vulnerable to extreme weather).
  • Utilities' monopoly status and lack of consumer choice.

• Historical Context & Industry Structure:

  • Utilities have been natural monopolies since the 19th century.
  • Regulation prevents price gouging, but still allows companies to recoup investment costs.
  • Quote: “The economies of scale in the utility industry enabled companies to produce cheaper, cheaper electricity and charge lower and lower rates in a way that would not occur in a competitive system.” (Jana Rose Schleiss, 06:25)
  • Quote: “It's both economically inefficient and just a bad business idea to say we're going to spend a lot of money to do exactly what they're doing already.” (Severin Borenstein, UC Berkeley, paraphrased by Nancy Marshall Genzer, 07:20)
  • No near-term retail market for electricity, unlike the cell phone industry.

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4. Lighter Economic News

Segment Starts: 08:21

• Girl Scout Cookies: Announcement of a new “Rocky Road Ice” Girl Scout cookie launching in 2026, with chocolate and marshmallow.

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Notable Quotes and Memorable Moments

• On Judicial Independence:
  “Her lawyers say Cook will continue to carry out her sworn duties, adding that the ruling, quote, recognizes and reaffirms the importance of safeguarding the independence of the Federal Reserve.”
  — Nancy Marshall Genzer, 02:19

• On Energy Industry Monopolies:
  “In 1882, Thomas Edison built the first electric power plant that provided a large number of customers electricity in New York City.”
  — Jana Rose Schleiss, 06:08

  “In other industries, competition can lead to lower prices for customers. That hasn't yet been the case with utilities.”
  — Nancy Marshall Genzer, 07:33

  “So basically we need wires that go to everybody's house or company. And as long as that's the case, we're going to have monopoly utilities.”
  — Jana Rose Schleiss, 07:58

• On New Cookie Flavors:
  “That seems like a lot. Just have one, not 17.”
  — David Brancaccio’s lighthearted take on the new Girl Scout cookie, 08:21

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Timestamps for Important Segments

| Time | Segment | |----------|-------------------------------------------------------------| | 01:02 | Lisa Cook and the Fed governance legal fight | | 01:48 | Details on the mortgage fraud allegation and judge’s ruling | | 02:19 | Independence of the Fed and statements from stakeholders | | 02:56 | New Fed Board nominee Stephen Myron | | 03:10 | Warsaw Stock Exchange, Russia-Poland incident, Trump tariffs| | 05:17 | Record-high electric bills: causes and context | | 06:08 | History of electric utilities and market structure | | 08:21 | Girl Scout cookie news |

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Conclusion

This Marketplace Morning Report episode efficiently informs listeners about major current economic events: a pivotal legal decision for the Federal Reserve’s independence, trends behind surging electric bills and the regulatory environment behind utility monopolies, along with brief notes on international economic and political developments. The episode closes with a lighthearted consumer tidbit on a new Girl Scout cookie, keeping the tone both informative and approachable.

Transcript

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[David Brancaccio]

A court says a president can't just fire a member of America's central bank, which under law has a large degree of insulation from politicians. But this is not likely the final word. I'm David Brancaccio in Los Angeles. Federal Reserve Board Governor Lisa Cook can stay in her job pending a possible legal appeal. A federal judge has ruled that Cook can stay while she fights President Trump's efforts to fire her. Marketplace's Nancy Marshall Genzer joins us now with more.

[Nancy Marshall Genzer]

Well, David, last night U.S. district Court Judge Gia Cobb issued a preliminary injunction barring President Trump from ousting Cook. So that means Cook can stay in her job while she fights her dismissal.

[David Brancaccio]

What did the judge have to say about assertions that Cook committed mortgage fraud?

[Nancy Marshall Genzer]

Well, the judge said that Cook, quote, made a strong showing that her dismissal would violate the Federal Reserve Act. Now that law says a Fed governor can only be removed for cause. The judge says that only refers to a Fed governor's behavior while in office. And Cook took out the mortgages in question before becoming a Fed governor. She's denied committing mortgage fraud.

[David Brancaccio]

Now are central bankers the Fed, they meet next week to possibly lower interest rates. Will Lisa Cook beginning at that two.

[Nancy Marshall Genzer]

Day meeting as things stand right now? Yes. In a statement to Marketplace, her lawyers say Cook will continue to carry out her sworn duties, adding that the ruling, quote, recognizes and reaffirms the importance of safeguarding the independence of the Federal Reserve. The White House also issued a statement, though, saying President Trump lawfully removed Lisa Cook for cause and quote, this ruling will not be the last say on the matter.

[David Brancaccio]

And meanwhile, the Trump administration's in the process of filling a separate vacancy on the Fed Board of Governors with White House economic adviser Stephen Myron.

[Nancy Marshall Genzer]

Yeah. The Senate Banking Committee is scheduled to vote on Myron's nomination today. If he's approved by the committee, his nomination will go before the full Senate for a vote. That could happen quickly. So he too could be at next week's Fed meeting.

[David Brancaccio]

All right, Nancy, thank you. Nancy's in Washington. The key index on the Warsaw Stock Exchange is down 1.3%. This after Russian drones that entered Poland's airspace were shot down by Poland. It's believed to be the first time a NATO country has fired on Russian assets since Russia invaded Ukraine. Prior to that, President Trump has called on China, had called on China and India to apply 100% tariffs on Russian imports to pressure Russia on Ukraine. The Marketplace team has a free newsletter, the Daily Wrap. It brings all the day's news and numbers to your inbox. On weekday evenings, a five minute Marketplace briefing. Read the latest issue and you can sign up for the Marketplace Daily Wrap. Marketplace.org subscribe.

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[David Brancaccio]

It is a record high year for electric bills. In the first six months of the year, rate increases requested are put into force total about $29 billion nationwide, according to the consumer advocacy group Powerlines. Part of this is rising demand for power and the need to maintain aging infrastructure. Jana Rose Schleiss reports on the business models of utility companies that help drive these price hikes.

[Nancy Marshall Genzer]

Demand for electricity is rising in part due to the expansion of power hungry data centers. Many utilities are investing in new power plants, the cost of which ultimately get passed on to customers when consumers don't like the price of gas, groceries, or a haircut, they can shop around for a cheaper option. Not so for electricity. Richard Hirsch at Virginia Tech says that's because utilities have pretty much always been monopolies.

[Jana Rose Schleiss]

In 1882, Thomas Edison built the first electric power plant that provided a large number of customers electricity in New York City.

[Nancy Marshall Genzer]

In the early days of electricity, companies built power plants in cities with large customer bases.

[Jana Rose Schleiss]

The economies of scale in the utility industry enabled companies to produce cheaper, cheaper electricity and charge lower and lower rates in a way that would not occur in a competitive system.

[Nancy Marshall Genzer]

To prevent price gouging, electrical utilities are regulated in each state. When companies want to raise prices or recoup investment costs, they present their case before regulators. And because utilities provide something that we all need, regulators want them to be.

[Jana Rose Schleiss]

Viable to make sure that utility companies actually earned enough money to stay in.

[Nancy Marshall Genzer]

Business without using their monopoly power to exploit their customers. These natural monopolies occur in industries that require large upfront investments. Severin Borenstein at UC Berkeley says there are also mechanical reasons. It's easier for just one company to make or deliver electricity power lines if.

[Jana Rose Schleiss]

Somebody is already running wires down your street. It's both economically inefficient and just a bad business idea to say we're going to spend a lot of money to do exactly what they're doing already.

[Nancy Marshall Genzer]

The high costs of upgrading and repairing that aging infrastructure, which is especially vulnerable to increasingly severe weather, is one of the many factors causing high utility bills this year. In other industries, competition can lead to lower prices for customers. That hasn't yet been the case with utilities. Because of that infrastructure need, Borenstein says a retail market for electricity isn't likely anytime soon.

[Jana Rose Schleiss]

So basically we need wires that go to everybody's house or company. And as long as that's the case, we're going to have monopoly utilities.

[Nancy Marshall Genzer]

That used to be the case for phone lines, but cell technology meant more consumer choice for providers. But we haven't figured out how to get there with electricity just yet. I'm Jana Rose Schlais for Marketplace.

[David Brancaccio]

And in our Breakfast of Champions category, there's news of a new Girl Scout cookie coming in. 2026 Rocky Road Ice inspired with chocolate and marshmallow in there. That seems like a lot. Just have one, not 17. In Los Angeles, I'm David Brancaccio, Marketplace Morning report from APM American Public Media.

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America is changing and so is the world.

[Nancy Marshall Genzer]

But what's happening in America isn't just the cause of global upheaval. It's also a symptom of disruption that's happening everywhere.

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