The Court of Appeal refuses Trump’s attempt to topple Lisa Cook from the Fed Reserve Bank before the interest rate decision

The Trump administration is expected to turn quickly to the Supreme Court in a final attempt to cancel cooking. The Federal Reserve meeting begins for two days to consider the next interest price step on Tuesday morning. The Cook suit, which seeks to prevent the shooting permanently on her way through the courts.

The White House campaign to dismiss Cook is an unprecedented offer to reshape the seven members of the Federal Reserve Board of Directors, which was designed to be largely independent of daily policy. No head of governor of the Federal Reserve in the Agency’s 112 -year -old history.

Separately, Republicans in the Senate on Monday Stephen Miran confirmedTrump’s candidate to an open place on the Federal Reserve. With the exception of any intervention at the last minute of the Supreme Court, the Committee to Determine the interest rates at the Federal Reserve will meet on Tuesday and Wednesday with all seven conservatives and heads of the 12 regional banks.

Twelve of these 19 officials will vote on changing the short -term interest rate of the Central Bank: all seven conservatives in addition to five regional heads, who vote on a roundabout.

President Jerome Powell indicated in a high -level speech last month, which is likely to reduce the Federal Reserve Bank its main rate at this meeting, from about 4.3 % to 4.1 %. Other borrowing costs, such as mortgage rates and auto loans, have already decreased in anticipation of reduction and can decrease.

Trump sought Fire cooking August 25But a federal judge Last week’s ruling The removal was illegal and returned it to the Federal Reserve. Bill Boute Bill Trump Cook accused the mortgage fraud because she seemed to demand the property of two “primary housing” in July 2021, before joining the council. These claims can lead to a decrease in the real estate mortgage rate and smaller payments than if one of them was announced as a rented drug or a second house. Cook denied the charges.

In Resolution 2-1, the Court of Appeal found that the rights of legal procedures in Cook had violated that the administration did not give it an official opportunity to respond to the charges.

Many legal scholars have seen a cooking attempt to threaten the erosion of the political Federal Reserve for a long time. Economists prefer Independent central banks Because they can do unimaginable things like raising interest rates to combat inflation more easily than elected officials.

Many economists are concerned that if the Federal Reserve falls under the control of the White House, this will maintain the main interest rate less than what is justified by the economic basics to meet Trump’s demands for the cheapest borrowing. This can Speeding inflation Long -term interest rates can also be raised, such as those on real estate loans and auto loans. Investors may ask for a higher return to possess bonds to make up for more inflation in the future, and to raise borrowing costs for the American government and the entire economy.

Separately, Miran heads the Economic House of Economists at the White House and said earlier this month that he will take an unpaid leave but keeps his job while working in the Federal Reserve. This will be the first time in decades by an executive branch official in the Federal Reserve.

Miran was appointed to end a period of expiry in January, but it can remain in the seat if an alternative is not chosen.

Cook denied any violations and was not accused of a crime. According to the documents It was obtained by Associated PressCook determined that Atlanta’s apartment would be a “vacation house”, according to an estimate of a loan obtained in May 2021. In a form looking for a security permit, it described it as a “second house”. It appears that both documents undermine the administration’s fraud claims.

Last week, the US Local Court Judge Jia Cope rule The administration did not satisfy a legal condition that it cannot be launched “for the reason” only “for the reason”, which it said is limited to misconduct while he was in office. Cook did not join the Federal Reserve Panel until 2022.

In their resumption in emergency situations, Trump’s lawyers argued that even if the behavior occurred before its time as a ruler, its alleged action “calls somewhat worthy of confidence in Cook and whether it could be a hostess responsible for interest rates and economics.”

Trump has Overpowered Powell and other members of the Federal Reserve Interest rate committee for not reducing the short -term interest rate that controls it more quickly. Trump said he believed that he should reach 1.3 %, a level that is not supported by any cash points and few economists.

Cook is The first black woman To serve as the ruler of the Federal Reserve. She was a Marshall researcher and obtained certificates from Oxford University and the Faculty of Silman, and before joining the board of directors she studied at Michigan State University and Kennedy’s government college at Harvard University.

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