The Last Word with Lawrence O’Donnell

Episode: Trump says he’s removing Federal Reserve Gov. Lisa Cook

Date: August 26, 2025
Host: Lawrence O’Donnell, MSNBC

Brief Overview

In this episode, Lawrence O’Donnell dissects a week of alarming political developments: Donald Trump’s continued use of federal military forces in major Democratic cities, the abrupt (and likely unlawful) attempt to remove Federal Reserve Governor Lisa Cook, and an unprecedented congressional subpoena for materials related to the Jeffrey Epstein investigation. Drawing on legal, economic, and historical expertise, O’Donnell and his guests highlight deepening fears of authoritarianism and the normalization of anti-democratic maneuvers in America.

Key Discussion Points & Insights

1. Trump's Military Deployments in Democratic Cities

[01:00]

• Trump continues his “assault on American cities” by deploying National Guard troops—now with sidearms—to Los Angeles, Washington D.C., and next, Chicago.
• Trump exaggerates urban crime rates to justify “martial law” tactics. Notably, homicide rates are down in Chicago by 33% for the year.
• O’Donnell asserts: “Donald Trump’s assault on American cities has nothing to do with violent crime... This has everything to do with intimidation and Donald Trump’s desire for martial law. It’s the soft underbelly of authoritarianism.”

2. Political and Historic Context

[06:18]

• Guest Jason Stanley (author, expert on fascism):

  • Trump evokes racist stereotypes about cities with significant Black populations as “crime-ridden” to justify targeting political opposition.
  • “He’s going to start incarcerating political opponents. And he’s sending a warning about the coming midterm elections.”
  • References the “crossing the Rubicon” moment—the normalization of military force in civil society.

• Guest Radley Balko (author, journalist):

  • “This isn’t a short-term solution. This is an undemocratic, authoritarian attempt at control.”
  • Compares Trump’s logic to that of Pyongyang, where “you can virtually eliminate crime if you want to turn the country into a police state.”

3. Democratic Pushback and the Stakes

[12:23]

• Illinois Governor J.B. Pritzker issues a stark warning:

  • “This is not about fighting crime. This is about Donald Trump searching for any justification to deploy the military in a blue city... to try and intimidate his political rivals. If this were happening in any other country, we would have no trouble calling it what it is—a dangerous power grab.”

• Balko: “You literally have the ruling party sending the military into cities controlled by the opposition party. If this were happening in any other country, the State Department would be issuing warnings... This is sort of the first steps toward a police state.”

4. Trump’s Firing of Federal Reserve Governor Lisa Cook

[14:10]

• Breaking news: Trump claims to have fired Lisa Cook, the first Black woman on the Federal Reserve Board, citing unsubstantiated mortgage fraud allegations.

• Gene Sperling (former National Economic Council Director):

  • “This is a very dark day for not just the independence of the Federal Reserve, but the confidence in the integrity of our economic institutions and the rule of law...” [16:10]
  • “If people now think the Federal Reserve is not committed to lower inflation, that they are just committed to whatever the president says right, we’re riskier.”
  • Predicts this will raise interest rates, hurt global investment and erode the U.S. economic gold standard.

• Andrew Weissman (MSNBC legal analyst):

  • “The Supreme Court has made it really clear... that’s not going to fly when it comes to the Federal Reserve, at least you have to have cause. And cause means a good reason and good faith... I don’t think anybody in the real world would say this isn’t a pretense.” [19:29]

5. Rule of Law, Dollar Stability, and Global Trust

[21:23]

• Sperling compares American credit and the dollar’s stability to Hamilton’s era, warning this move undermines global trust in US financial institutions and raises borrowing costs for all Americans.

6. Judicial Pushback and Authoritarian Overreach

[24:55]

• A federal judge blocks the Trump administration from deporting Kilmar Abrego Garcia to Uganda, a country he’s never lived in, describing the government’s maneuver as coercive and a breach of due process.
• O’Donnell: “Every authoritarian attempt Donald Trump makes should be a signal to Americans that the only way to stop this behavior is through resistance.”

7. Codifying Authoritarianism via Executive Orders and Political Norm-Breaking

[25:00–29:28]

• Trump signs executive order making flag burning punishable by jail—despite the Supreme Court’s precedent protecting such speech.
• Historian Garrett Graff:
  • “Americans wrongly believe that there would be one clear, unambiguous moment where we go from democracy to authoritarianism. Instead, this is exactly how it happens—a norm blurring here, a norm destroyed there, a presidential dictat unchallenged.” [27:49]

8. Democratic Leadership’s Response

[31:59]

• Graff criticizes the absence of national Democratic leadership:
  • “National Democrats seem all but invisible as the military takes over... This should be a layup to oppose the most basic duty of any congressional figure. And yet... there has not been any concerted effort to voice opposition to the occupation.” [32:52]
• Warns that tactics like ICE checkpoints and military occupation in minority-heavy cities could manipulate or suppress the 2026 midterm elections.

9. New Congressional Subpoena in Epstein Case

[35:17]

• The House Oversight Committee subpoenas Jeffrey Epstein’s “birthday book,” reported to include a letter from Trump containing a drawing and cryptic message.
• Rep. Robert Garcia (Oversight Dem):
  • “Both Donald Trump and Ghislaine Maxwell are enormous liars, clearly. And this just continues, this massive cover up... We are going to force votes... and we’re not going to stop until we get justice for all the victims and tell the American people that all we’re hearing from them right now are lies and a massive cover up.” [37:58]

Notable Quotes & Memorable Moments

• Lawrence O’Donnell: “Donald Trump’s assault on American cities has nothing to do with violent crime... This has everything to do with intimidation and Donald Trump’s desire for martial law. It’s the soft underbelly of authoritarianism.” [01:00]

• Gov. J.B. Pritzker: “If this were happening in any other country, we would have no trouble calling it what it is—a dangerous power grab.” [03:38]

• Jason Stanley: “He’s relying on a background stereotype, that racist stereotype, that cities with large black populations... are crime ridden. And he’s using that stereotype to go after cities... then he’s going to start incarcerating political opponents.” [07:31]

• Radley Balko: “You literally have the ruling party sending the military into cities... If this is not authoritarianism, if this is not sort of the first steps toward a police state, I don’t know what is.” [13:06]

• Gene Sperling: “This is a very dark day for not just the independence of the Federal Reserve, but the confidence in the integrity of our economic institutions and the rule of law...” [16:10]

• Garrett Graff: “Americans wrongly believe that there would be one clear, unambiguous moment where we go from democracy to authoritarianism... Instead, this is exactly how it happens—a norm blurring here, a norm destroyed there...” [27:49]

• Andrew Weissman: “The Supreme Court has made it really clear... with the Federal Reserve, at least you have to have cause. And cause means a good reason and good faith... I don’t think anybody in the real world would say this isn’t a pretense.” [19:29]

• Rep. Robert Garcia: “Both Donald Trump and Ghislaine Maxwell are enormous liars, clearly. And this just continues, this massive cover up... We are going to force votes... and we’re not going to stop until we get justice for all the victims...” [37:58]

Timestamps for Important Segments

• [01:00] Trump’s military deployments in Democratic cities; context on crime and Trump’s motives
• [07:31] Jason Stanley on fascism, history, and racialized politics
• [09:10] Balko on the failure of military interventions to address crime
• [12:23] Gov. Pritzker’s warning to Trump and national implications; Democratic pushback
• [14:10] Breaking: Trump attempts to fire Federal Reserve Governor Lisa Cook
• [16:10] Sperling on the economic consequences and erosion of Fed independence
• [19:29] Weissman on legal standards for removing Fed governors and the pretext for Cook’s removal
• [24:55] Federal judge blocks forced deportation of Kilmar Abrego Garcia; rule of law at stake
• [27:49] Garrett Graff on “the creeping normalization of authoritarianism”
• [32:52] Graff challenges national Democratic leadership’s silence
• [35:17] Oversight Committee subpoenas Epstein “birthday book”; Rep. Garcia’s commitment to justice

Conclusion

This episode spotlights alarming shifts in America’s political climate—expanded militarization, threats to independent institutions, and constitutional norms under open challenge. Expert guests connect these actions to historic precedents of authoritarianism. The episode ends with breaking developments on Congress’s investigation of Jeffrey Epstein’s connections to Donald Trump, emphasizing the importance of transparency and accountability as democracy itself is tested.