The Federal Court of Appeals rejected the presidential request to fire Governor Lisa Cook before the decision on interest rates, so it may be part of the meeting that will make the decision tomorrow.
Donald Trump’s administration suffered a new judicial stupa in its bracelet with the Federal Reserve (Fed). The Federal Court of Appeals of the Columbia district rejected the request of the American president to allow the immediate dismissal of Lisa Cookgovernor of the FED, before the meeting of the Federal Open Market Committee (FOMC) on Wednesday, which will define the US monetary policy.
“Given these unique circumstances and the great probability that Cook will succeed, at least, in its demand for due process, The government amparo application is rightly denied“The Brad Garcia circuit judge founded on the ruling that keeps Cook in his position.
The decision, adopted by two of the three magistrates of the Court, He had the dissent of Gregory Katsasthe only judge designated by Trump on the panelaccording to the American media The Hill.
Mortgage fraud accusations
Trump had fired Cook at the end of last month after a criminal complaint that accuses her of having falsely declared two properties in Michigan and Georgia as main residences with just weeks of difference in 2021. In addition, he was charged to have improperly presented a third property as “second residence.”
Last week, a federal judge had already temporarily blocked Cook’s dismissalarguing that the accusations of the Trump administration were not sufficient cause for its dismissal, according to the Federal Reserve Law. In addition, he considered that The way in which the dismissal occurred could have violated the constitutional procedural rights of the official.
USA Federal Reserve
Cook’s dismissal attempt represents Trump’s latest effort for throwing independent agencies leaders That, under federal legislation, they cannot be fired without just cause.
The fled one with the fed
The case is part of Trump’s systematic criticisms of the Federal Reserve for not reducing interest rates with the speed that it considers necessary to boost the economy. With this judicial decision, Cook will participate in the next Vote of the FOMC on interest rate cuts.
Trump already has two “allies” on the Board of Directors: Governors Michelle Bowman and Christopher Waller, both appointed during their first mandate. To that was added Stephen Miran, who presided over the Council of Economic Advisors of the White House, and that will temporarily occupy a vacancy until the end of January.
Anyway, the decision will be made by the FOMCcomposed of the governors of the monetary authority, the president of the FED of New York and a rotating system of regional banks, adding in total 12 votes.
In the market, The consensus is that tomorrow a 25 basic points are announced at the reference rate of the American Central Bank.
Source: Ambito
