A standoff is brewing at the Federal Reserve on Tuesday. President Donald Trump claims Federal Reserve Gov. Lisa Cook is out, but she refuses to step down, setting up a legal showdown that could test the limits of presidential power over the central bank.
Plus, Trump is moving to expand the National Guard’s domestic role with new specialized units. But Illinois’ governor said the president has gone too far, warning Trump to keep his troops out of Chicago.
Also, Trump wants to imprison anyone who burns an American flag. But critics — including many conservatives — are pushing back.
These stories and more highlight your Unbiased Updates for Tuesday, Aug. 26, 2025.
Federal Reserve governor refuses to step down after Trump fires her
A showdown is unfolding Tuesday morning between President Donald Trump and the Federal Reserve. The governor of the Federal Reserve, Lisa Cook, has refused to step down after Trump announced her termination on Truth Social.
Trump said “cause” exists because Cook is under federal investigation for alleged mortgage fraud. She’s not the only one; Sen. Adam Schiff, D-Calif., and New York Attorney General Letitia James are also under investigation.
Under the Federal Reserve Act, governors can only be removed for cause, meaning misconduct or wrongdoing that has been proven. However, Cook has not been charged with any crime.
Her lawyer criticized the president, calling his move “bullying” and stating that it lacked any legal basis.
Cook released a statement of her own. She said, “President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so. I will not resign.”
Instead, Cook said she will continue to carry out her duties.
The stakes between these two are high. The Federal Reserve is designed to operate independently, making decisions that impact interest rates, markets and your wallet.
A court battle over whether a president can remove a Federal Reserve governor could shake that independence, and possibly rattle the economy.
Trump signs executive order expanding National Guard’s domestic role
Trump has doubled down on his crime crackdown, signing an executive order Monday that gives the Pentagon a larger role in domestic law enforcement.
The order establishes new, specially trained National Guard units in Washington, D.C., and every U.S. state. The move is a “quick reaction force” that can be deployed nationwide to “quell civil disturbances.”
The White House called the order a “common-sense measure” to make the capital safe and beautiful again.
However, critics called it something else: A move that blurs the line between military and law enforcement.
Trump addressed those concerns directly.
“And they say, we don’t need him, freedom, freedom. He’s a dictator. He’s a dictator. A lot of people are saying maybe we’d like a dictator, I don’t like a dictator, I’m not a dictator,” Trump said. “I’m a man with great common sense and a smart person. And when I see what’s happening to our cities and then you send in troops, instead of being praised, they’re saying you’re trying to take over the republic.”
Trump is now considering sending guard troops to Chicago next, saying he could solve the city’s crime issues in a week. But Democratic leaders, including Illinois Gov. JB Pritzker, have called it un-American and a misuse of the military for politics.
“Donald Trump wants to use the military to occupy a U.S. city, punish his dissidents and score political points. If this were happening in any other country, we would have no trouble calling it what it is, a dangerous power grab,” Pritzker said.
Legal scholars argued that the order raises serious questions. Some mentioned the Posse Comitatus Act of 1878, which generally prohibits federal troops from policing American streets and restricts the use of the Army or Air Force for domestic law enforcement.
For now, more than 2,200 guard troops remain deployed in Washington, many of whom are already carrying their service weapons on patrol.
Trump’s flag-burning order draws rare rebuke from conservatives
Another of Trump’s executive orders has sparked backlash. This time, it’s from his own side of the aisle.
Trump signed an order Monday directing the Justice Department to prosecute people who burn the American flag. It also called on Attorney General Pam Bondi to challenge the Supreme Court’s 1989 ruling that flag burning is a form of protected speech.
Conservative commentators quickly pushed back.
Radio host Dana Loesch called flag-burning vile, but said the government has no right to control speech or expression.
Commentator Erik Erikson wrote, “It is well-settled constitutional law,” and that “the executive does not get to create crimes.”
And radio host Jesse Kelly warned the order had him, “As close as I’ll ever be to lighting one on fire.”
The U.S. Supreme Court ruled decades ago that flag burning is a form of symbolic speech.
Even the late Justice Antonin Scalia, a conservative, was in the majority.
Critics said Trump’s order is more symbolic than substantive, likely to face swift legal challenges and reignite the debate over free speech.
House panel subpoenas Epstein estate records
The House Oversight Committee has increased pressure on the Jeffrey Epstein estate by issuing a subpoena for key documents. Among the records lawmakers seek is Epstein’s infamous “birthday book,” compiled by Ghislaine Maxwell for his 50th birthday.
The Wall Street Journal previously reported that the book included letters, one allegedly from Trump years before he was elected president.
Trump has denied writing it, suing the WSJ for defamation.
The subpoena also demanded “any document that could be reasonably construed as a potential client list tied to sex acts or trafficking.”
House Oversight Committee Chair James Comer, R-Ky., said the estate seems willing to cooperate. The estate has until Sept. 8 to turn over the documents.
DOJ will sue California over new map: Trump
A new redistricting fight is brewing between California and the federal government. Trump claimed the Justice Department will sue over California Gov. Gavin Newsom’s plan to redraw the state’s congressional map.
The fight originated from Texas, where Republicans recently passed a new congressional map, adding five GOP seats before the 2026 midterms. California Democrats responded with Proposition 50, which Newsom signed into law last week, creating five more Democratic-leaning districts.
Trump, who cheered on Texas, now calls California’s plan illegal and says a DOJ lawsuit is coming “pretty soon.”
Newsom fired back with two words on social media: “Bring it.”
Republicans in California also filed an emergency petition Monday urging the state Supreme Court to block a special November election on the proposal. They argued that it violates the state constitution and undermines the independent redistricting commission approved by voters.
Pumpkin spice season returns to Starbucks
Summer is winding down in many parts of the country, school is back in session, fall is in the air, and here’s a sure sign. Starbucks’ Pumpkin Spice Latte is back on the menu, marking the unofficial start of pumpkin spice season.
If you think it’s too soon, remember it actually dropped a few days later than last year.
And Starbucks is not alone.
Dunkin’ rolled out its fall lineup a few days ago.
And Krispy Kreme? It started offering its pumpkin spice collection on Aug. 11.
More from Straight Arrow News:
In Kerr County, Texas, flood-recovery volunteers begin to face their grief
Joelene Jensen and Lorraine Daniel combed riverbeds with the best of intentions. The roommates from Schertz, Texas, volunteered with Florida-based nonprofit Heal Corps to aid with search-and-rescue efforts in Texas Hill Country following this July’s deadly flooding.
But Jensen and Daniel didn’t find anyone.
Still, they wanted to help. So the roommates turned to their shared rock-collecting hobby to express their sorrow. They hope to construct a memorial, built from riverbed rocks collected during their rescue efforts, in an area outside of Comfort, Texas, off of Ranch Road 475. It will highlight the idea that rocks and people alike can find belonging in places that Jensen described as “so breathtakingly beautiful, and yet so disastrous.”
Jensen and Daniel’s focus on the memorial allowed them to work with purpose in a trying time, something that grief experts say is important — not just for those who lived in places affected by disaster, but also for the helpers who come to town.
The pair told Straight Arrow News they hope to restore memory to the Guadalupe River and help create a healing process for the community — one that includes the river itself. Read the full story now >
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Author: Craig Nigrelli
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