An American Judge Has Temporarily Prohibited President Donald Trump from Firing Fed Governor Lisa Cook. She May Remain in Office As Long As She Challenges The President’s Attempts to Dismiss Her.
The Ruling Means That Cook Will Likely Be Able to Attend the Fed Meeting on September 16 and 17 to Vote on a Possible Interest Rate Cut.
Trump accuses Cook of MortGage Fraud and Announced Her Dismissal at the End of August. The Fed Governor was Appointed in 2022 by then-president Joe Biden as the First Black Woman Ever on the Central Bank’s Board.
The Judge Concluded That Cook’s Alleged MortGage Fraud was No Grounds for Her Dismissal. Also, the way she was dismissed violated her right to a fair trial, accordance to the Judge.
The Justice Department is expected to Appeal the Ruling Soon. The US Supreme Court Will Likely Have the Final Say in the Dismissal Case.
Trump Has Been After The Central Bank for Some Time. For Example, He PreviOutly Threateded to Fire Fed Chairman Jerome Powell. The president is annoyed by the fact that the fed board does not because to Lower Interest Rates.
An interest rate cut stimulates the economy. But The Central Bank’s Board is Hesitant because it Fears Inflation. There are groups that Trump’s Tariff Policy Will Lead to Higher Prices and An Interest Rate Cut Could Further Fuel That.
However, there are now signals that things are not going well in the Labor Market. It is Possible That the Central Bank Will Therefore Decide to Cut Interest Rates later This Month.