US President Donald Trump has announced that he would dismiss Federal Reserve director Lisa Cook. He writes that in a letter published on his Platform Truth Social. It would be for the first time that a president fired a director of the Central Bank.
Trump accuses Cook of Mortgage Fraud and announced last week that she wanted to dismiss her if she did not leave on his own initiative. In his letter, Trump writes that he “no longer has faith in the integrity” of Cook because of her “possibly criminal behavior”.
The US Department of Justice announced last week that it might want to investigate Cook. Bill Pulte, head of the American Federal Housing Finance Agency (FHFA) and ally of Trump, previously stated that Cook would have forged bank documents and property data to get more favorable loan conditions.
Cook just refuses to resign when dismissal. She disputes that Trump has the authority to remove her. “I keep doing my job to help the American economy,” she responds in a statement. Her lawyer states that Trump has no legal basis for dismissal and promises to take “all steps” to challenge this. According to American media, it is uncertain whether Trump can actually fire her.
According to CNN, this would be the first time in the 111th anniversary of the Central Bank that a president fires a director. Cook was appointed in 2022 and was the first black woman in this position.
Persistent pressure on the central bank
This step is a continuation of Trumps fight against the central bank. It must officially operate independently, but is increasingly the subject of political struggle. For example, Trump caused a riot earlier this year after he said that he wanted to replace FED chairman Jerome Powell because he did not agree with his decisions.
Trump thought that Powell was too careful with interest rates and the economy was not enough. Those statements are controversial because the central bank should be independent of political pressure. In addition, an American president does not have the authority to replace the chairman of the FED.
US President Donald Trump Has Announced the Dismissal of Federal Reserve Governor Lisa Cook. He writes this in a letter published on his platform truth social. It would be the first time a President Has Dismissed a Central Bank Governor.
Trump battery Cook of MortGage Fraud and Announced Last Week that the Wanted to Fire Her If She did not leave on her own accord. In His Letter, Trump Writes That He “No Longer Has Confidence in the Integrity” of Cook Because or Her “Possible Criminal Behavior.”
The US Department of Justice Announced Last Week That It May Launch An Investigation Into Cook. Bill Pulte, Head of the US Federal Housing Finance Agency (FHFA) and Ally of Trump, PreviOutly Stated that Cook Had Falsified Bank Documents and Property Data in Order to Obtain Morefable Loan Terms.
Cook refuses to simply accept her dismissal. She disputes that Trump has the authority to remove her. “I will continuously to do my job to help the American economy,” She Responds in A Statement. Her Lawyer States That Trump Has No Legal Basic for Dismissal and Promises to Take “All Steps” To Challenge This. Accordance to American Media, it is Uncertain Whether Trump can actual Fire Her.
Accordance to CNN , This would be the first time in the 111-year Existence of the Central Bank That a President Has Fire a Governor. Cook was Appointed in 2022 and was the First Black Woman in this position.
Continued pressure on the central bank
This Step is a continuation of Trump’s Fight Against the Central Bank. It should official Operate Independently, but is Increasingly the subject or political struggle. For example, Trump caaed a stir earlier this year after saying he wanted to replace fed chairman jerome powell because he was disagulent with his decisions.
Trump Felt That Powell was too Cautious with Interest Rate Cuts and Stimulated the Economy Too Little. These statements are controversial because the central bank is supposed to be independent or political pressure. In Addition, An American President Does Not Have the Authority to Replace the Chairman of the Fed.