The US president announced the dismissal of Lisa Cook and opened a dispute on the independence of the Federal Reserve that could end in court.
The President Donald Trump He fired the governor of the Federal Reserve MondayLisa Cookin a marked climbing of his attempt to exercise a greater control over a historically independent institution. In a letter published on its social truth platform, he reported that the decision was due to the accusations of Mortgage fraud against the official.
The accusations had been launched last week by Bill pultedesignated by Trump at the head of the agency that regulates the mortgage giants Fannie Mae and Freddie Mac. About said that Cook declared two main residences in 2021 – one in Ann Arbor, Michiganand another in Atlanta– To obtain better mortgage conditions, when rates are usually higher for second homes or properties for rent.
The announcement was known a few days after Cook ensured that would not leave his positionalthough Trump had previously claimed his resignation. The Fed Board is made up of seven membersso the presidential measure could have deep economic and political ramifications.
Lisa Cook
During his message, Trump defended that he had the Constitutional authority To say goodbye to Cook, although doing so opens questions about him degree of independence of the Federal Reserve. Dismissal probably unleashed a Legal battlein which Cook could continue in his position while the case advances in the courts, although he should litigate as an injured party and not with support of the Fed.
It is a new attempt at the White House to advance on one of the Few independent agencies that subsist in Washington. Trump has repeatedly criticized the president of the Fed, Jerome Powellfor not reducing short -term interest rates, and has even threatened to say goodbye.
If you manage to force Cook departure from the Board of Directors, Trump would get the opportunity to name a political ally. The president has already advanced that he will only designate officials to support his agenda Reduction of interest rates.
Donald Trump still did not define the name of the future president of the Fed and ensure that “it will take months”
The decision of the president of the United States, Donald Trump, to replace the holder of the Federal Reserve, Jerome Powell, It will not be immediate and is expected to take “Several months”while the name of the successor is defined. The mandate of the head of the American Central Bank ends in May 2026. We weeks ago filtered possible candidates.
While the tension between the White House and the Fed, With cross accusations and threats of layoffs by the tycoon for its members, the president’s economic advisor, Kevin Hasset, He anticipated that the last name of Powell’s replacement is not yet defined.
“I would expect this to lengthen a few more months before President Donald Trump) decides who will be the next president of the Fed”Said the director of the National Economic Council, Hasett, in an interview with CNBC on Monday.
Hasset cited the ongoing interviews of the United States Treasury Secretary, Scott Besent, to possible candidates.
Source: Ambito
