Trump orders removal of Federal Reserve governor Lisa Cook
15 days ago
- #Trump Administration
- #Economic Policy
- #Federal Reserve
- President Trump orders the removal of Federal Reserve Governor Lisa Cook, citing 'sufficient reason' related to alleged false statements on mortgage agreements.
- Cook refuses to resign, stating Trump lacks the authority to fire her, and vows to continue her duties.
- Legal experts suggest Trump's move may lead to a court battle over the legality of the dismissal.
- The Federal Reserve has not commented on Trump's announcement, made via Truth Social.
- Cook is the first African American woman on the Fed's board, and her removal could signal a broader attempt to reshape the Fed.
- Allegations against Cook involve conflicting statements about her primary residence in mortgage documents, which she claims are from a loan application before her Fed tenure.
- Trump has also criticized Fed Chair Jerome Powell for not cutting interest rates aggressively, though Powell recently hinted at a possible September rate cut.
- Market reactions include a weaker US dollar amid speculation that Cook's replacement might push for more rate cuts.
- Concerns arise over the potential impact on the Fed's independence and US market stability if Trump succeeds in reshaping its leadership.