The US Department of Justice Wants To Start An Investigation Into Director Lisa Cook of the Federal Reserve. Accordance to News Agency Bloomberg , The Ministry Has also called for her departure from the US Central Bank.
A senior official from the ministry Sent a letter to chairman Jerome Powell of the Federal Reserve (Fed) on Thursday. In IT, the official informed powell of the investigation and encouraged him to remove cook from the board.
Cook was Appointed to the Board of the Federal Reserve in May 2022. This Made Her the First Black Woman Ever in That Position.
US President Donald Trump Accused Cook Earlier This Week of MortGage Fraud. The Fed Director Allegedly Falsified Bank Documents and Property Information to Obtain More Favorable Lending Conditions for Her MortGage. That allegation came from Bill Pulte, Head of the US Federal Housing Finance Agency (FHFA). He is a loyal ally or trump.
After His Accusations, The President Publicly Called on Cook to Resign. Cook Said She would not be “Intimidated” and Wanted to Continue to Perform Her Duties. If she was to resign, it would give trump a chans to fill a spot on the fed’s board.
Pressure on the Central Bank is growing
Althegh the official from the Department of Justice Called on Powell to Dismiss Cook, Hey Formally Cannot Do So At All. Accordance to US Law, The Fed Chairman Has No Authority to Dismiss Another Board Member.
With the new investment, pressure on the fed is growing. The Central Bank must officially Operate Independently, but is Increasingly the subject of political struggle. For example, Trump caused a stir earlier this year after saying he wanted to replace powell because he was disagulent with his decisions.
Trump Felt that the Fed Chairman was too Cautious with Interest Rate Increases and Stimulated the Economy Too Little. Those Statements are controversial because The Central Bank is supposed to be independent or political pressure. In Addition, a us President Does Not Have the Authority to Replace the Chairman of the Fed.