This unmistakable step further exacerbates the confidence of feds and American assets, as it is noted as a new blow to the freedom of the central bank.
US president Donald Trump has announced his desire to remove a member of the Federal Reserve System Council Lisa Cook, which could lead to a judicial dispute and influence the independence of the Central Bank. She is writing about it Bloomberg On Tuesday, August 26th.
In a letter published in the reality of the Social Platform, Trump said he had “enough basis” for the dismissal of Lisa Cook due to the alleged false statement on one or more mortgage loans. Cook became the first black woman at the Fed council in Washington.
The dismissal led to a fall in the United States’s long -term bond at the auction on Tuesday.
The dismissal of Cook, who was appointed by Joe Biden in 2022, will open up Trump to provide most of the seven people’s council. Its term must end in 2038. The fed refused to comment.
In this regard, Cook refused to resign. The lawyer has confirmed that he will take all the steps to prevent the president’s “illegal act”.
The lawyers note that Cook may challenge the dismissal of the court and request a temporary restoration for positions as the consideration continues. To date, criminal charges have not been brought against it, but the United States Department of Justice has signed a possible investigation.
The dismissal of the cook was a reaction to the complaints of the federal housing agency director Bill Pulte, who said he allegedly provided incorrect information to two credit applications in Michigan and Georgia.
Experts note that this step of Trump could break Fed’s freedom and influence the government bond market. After the president’s statement, the dollar rate dropped by 0.3%, while gold rose 0.6%.
Economists are warning that changing the forefront of the freedom of the central bank can affect the US credit rating.
The S&P Global Ratings previously noted that political events affecting the work of American institutions or Fed freedom can perform pressure on the US+rating+at the AA+level.
Democrats, including Senatorka, Elizabeth Warren, condemned Trump’s actions as an “illegal attempt to delete and seize power of power” and called on the court to cancel his decision.
Trump had previously criticized the Fed for the high rate, which, in his opinion, increases government costs and harm the housing market. The dismissal of the cook could create a preceding and a legal dispute, as the president had not been before a member of the Federal Reserve Council was removed.
Remember that in April the dollar collapsed because of Trump’s plans to remove the Fed leader.
Trump dropped the dollar with the values of 2022
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.