President Donald Trump announced the removal of Federal Reserve Governor Lisa Cook, one of seven members of the Fed’s Board of Governors. Trump claims she made false statements on mortgage documents.
Cook responded by stating that she would not resign and would be pursuing legal action. The push to remove Cook highlights the broader pattern of pressure by Trump on the Fed as he also publicly expressed frustration with the Fed’s reluctance to aggressively cut interest rates. If this removal is upheld, it could weaken the institutional autonomy of the Fed, allowing for even more executive political influence over monetary policy. The uncertainty from this action could unsettle financial markets.
Article link: https://www.bbc.com/news/articles/cx275n8gx0ro
1 comment:
I agree with your analysis that such a removal could create volatility in the financial markets. I think Trump's removal of Lisa Cook could potentially be warranted, but that being said, if he is guilty of the same fraudulent activities should not the same be said about him. I also think this would set a bad precedence of political oversight on the Fed which has historically operated independent of the government.
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