Trump Fires Fed Governor Lisa Cook
16 days ago
- #Trump Administration
- #Economic Policy
- #Federal Reserve
- President Donald Trump fired Federal Reserve Governor Lisa Cook over allegations of mortgage fraud.
- Cook was accused of claiming two primary residences to secure better mortgage terms.
- Trump's action is seen as an escalation in his efforts to control the Federal Reserve, traditionally an independent institution.
- Cook had previously refused to resign despite Trump's calls, with Senate Democrats supporting her.
- Trump justified the firing by citing a lack of confidence in Cook's integrity and his duty to enforce the law.
- The firing may lead to a legal battle, with Cook potentially remaining in her position during proceedings.
- This move is part of Trump's broader strategy to exert influence over independent agencies, including the Federal Reserve.
- Trump has criticized Fed Chair Jerome Powell for not cutting interest rates and has threatened to replace him.
- Replacing Cook could allow Trump to appoint a loyalist who supports his economic policies.
- Even with a new chair, Fed policy may not shift as desired due to the voting structure of the interest-rate setting committee.