Donald Trump moves to fire Fed governor Lisa Cook | Federal Reserve
Donald Trump said that he was dismissing the governor of the federal reserve, Lisa Cook, for allegations that she had committed mortgage fraud, in an extraordinary decision that marks the latest escalation of the American president’s attack on the Central Bank’s independence.
Trump wrote Cook on Monday, telling her that he was withdrawing her from his “immediately immediately” position, based on the allegation of one of her allies that she had obtained a mortgage in a second home that she has badly described as her main residence.
Cook replied several hours later in a statement sent by email to journalists through the law firm Abbe Lowell, saying of Trump that “no cause exists under the law, and he does not have the authority” to withdraw it from the work to which she was appointed by Joe Biden in 2022.
She said: “I will continue to exercise my tasks to help the American economy.”
Lowell said that “Trump requests had no appropriate processes, base or legal authority”, adding: “We will take all the necessary measures to prevent this attempt at legal measures”.
Trump published the full text of the letter on social networks on Monday evening. In this document, he said that he had found “a sufficient cause” in the allegation against her to remove it from his position.
Cook’s release would allow Trump to replace a replacement, caregiver to exercise more control over the Fed policy. Its lower interest rate requests have so far dropped into the ears of a deaf.
The Trump administration continued several of the president’s political enemies, including the Prosecutor General of New York, Letitia James, and the Senator of California Adam Schiff, for allegations of mortgage fraud. James and Schiff denied allegations.
Cook is not a politician, but is part of a series of Fed political decision -makers who have challenged Trump’s persistent calls to rate reductions. She became the first black woman to sit on the board of directors of the Central Bank when she was appointed to a mandate of the Fed board of directors which was not to end until 2038.
A respected economist, with stays at Harvard University and the University of Stanford, Cook sat on the council of economic advisers under Barack Obama.
In May, the United States Supreme Court suggested that the president did not have the power to draw, without cause, the governors of the American central bank – an independent agency whose members are not used for the pleasure of the president.
The attack on the administration against the Cook’s future at the Fed was led by Bill Pulte, an official appointed by Trump leading the Federal Housing Finance Agency American, who said that she said that two different properties were her main residences when obtaining mortgages in 2021.
“How can this woman be in charge of interest rates if she was lying to help her own interest rates?” Pulte wrote on X, formerly Twitter. He referred the case to the Ministry of Justice for investigation.
Trump seized the claims before Cook responded, writing on Wednesday on Truth Social, his social network, which she “must resign, now !!!”.
The Senate Democrat, Chuck Schumer, criticized Trump’s decision against Cook. “Donald Trump plays a dangerous game from Janga with a key pillar of our economy,” he said.
“This cheeky takeover must be arrested by the courts before Trump permanent damage to national, state and local economies. And if the economy crashes, if families lose their savings and the main street pays the price, Donald Trump has each ounce of the wreckage and the devastation that families feel. ”
The president of the FED, Jerome Powell, said on Friday that the Fed was preparing to start reducing interest rates next month, but reiterated the warnings of the potential risks posed by Trump policies, including radical prices and a repression of immigration, on the economy.
“This year, the economy has been faced with new challenges. Sharedly higher prices in our business partners reflect the global system,” Powell said in a discourse closely examined to other central bankers gathered in Jackson Hole, Wyoming. “The stricular immigration policy has led to a brutal slowdown in labor growth.”
The best Democratic legislators furiously denounced Trump’s attempt to shoot Cook. Elizabeth Warren, Senator of the Massachusetts and classification member of the Senate Banks, Housing and Urban Affairs Committee, described him as “last example of desperate president in search of a scapegoat to cover his own failure to reduce costs for the Americans”.
“It is an authoritarian takeover which openly violates the law on the federal reserve and must be canceled in court,” said Warren.
Economists and experts have also criticized this decision, warning that the ramifications of his attempted shooting could reach the portfolios of the Americans.
Rohit Chopra, the former director of the Consumer Financial Protection Bureau under Joe Biden, accused the White House of seeking to “transform the financial regulators of independent obeying dogs that do what they are told”.
“The demolition institutions with illegal behavior and pathetic power seizures come with the costs for the Americans,” said Skanda Amarnath, executive director of the America and former Fed economist. “The dollar continues to weaken while American governance continues to erode. This means higher prices for all products.
