Donald Trump has ceased Lisa Cook, governor of the “on the occasion,” he announced himself in social networks. The dismissal of Cook, who had been accused by an ally of the president of the United States of fraud in mortgage requests, is legally doubtful and sows doubts about. But waiting to see if the economist appeals against his cessation, the step can take new spindle to the Republican to obtain control of the institution responsible for monetary policy, one of his ambitions for this mandate that had been shown to eliminate so far. But it can also cause repercussions on markets.
Cook, appointed by President Joe Biden and whose mandate did not expire until 2038, is the first African -American woman governor of the US Fed.
In the dismissal letter, which Trump has published on his social network, Truth, the president refers to the complaint filed by a high position of the Housing and Great Supporter Department of Trump, Bill Ablicte, who assured that Brown had declared as a primary residence two homes in two different states, to request mortgages for both in favorable terms.
“You are eliminated from your position at the Board of Governors of the Federal Reserve with immediate effect,” reads the letter, with the White House letterhead and the presidential firm.
Trump also declares that “the Federal Reserve has a huge responsibility by setting interest rates and regulating the reserve and member banks.” Therefore, “the American people must be able to have full confidence in the honesty of the members responsible for supervising and setting the Federal Reserve policy. In the light of their deceptive and potentially criminal behavior in a financial issue, they cannot have it, and I do not have that confidence in their integrity.”
The dismissal of Cook is the most aggressive step given so far by Trump in its attempts to take control of the independent Fed. He arrives just weeks after economist Adriana Kugler resigned from her position as a member of the Board of Governors on August 1.
Since then, Trump, who has made a habit of attacking against the president of the Federal Reserve Jerome Powell, has appointed his economic advisor Stephen Stephen look. The vacancy that Brown will leave opens another opportunity for the Republican to name a substitute closer to his economic approaches and more susceptible to ever to his calls to cut interest rates.
In his speech at the annual meeting of central governors at Jackson Hole last Friday, Powell gave his. The president of the Fed had so far resisted Trump’s intense pressures, considering that a reduction of money would give wings to inflation not completely dominated.
“With the monetary policy in restrictive territory, the overview and the changing balance of risks could justify an adjustment of our policy,” Powell declared. The words of the president of the Board of Governors unleashed the euphoria in the markets. But the speech did not seem to convince the tenant of the White House. “Too late,” he said.
