Trump declares the war on the Federal Reserve, which leads to Titanic’s struggle for the most important central bank in the world

S& P 500 futures decreased by 0.13 %, and the treasury returns increased for 10 years by 1.4 % with bonds selling. The dollar fell 0.16 % against the euro and 0.29 % against the yen.

With the increasing concern of investors of political decisions instead, they will demand higher returns on bonds and increase skepticism about the state of the dollar as the best backup currency in the world.

“According to my authority, according to Article Two of the United States Constitution and Federal Reserve Law of 1913, in its amended form, you are removed from your position in the Federal Reserve Council, actually immediately,” Trump wrote in a letter published on His social reality account.

Since his return to the White House, he demanded a reduction in federal reserve rates and the president routinely Jerome Powell for not doing so. After Trump will release him, he fell later.

But last week, Trump threatened to shoot cooking if she did not resign, after accusing her administration housing official of defrauding a mortgage. Cook said last week that she would not be intimidated and pledged to refute the accusations.

A dispute over the president’s ability to remove the governor of the Federal Reserve ultimately appears to the Supreme Court.

Earlier this year, the Supreme Court said that federal reserve officials had a special situation that requires them to dismiss them unless it was “for the reason”, which was previously interpreted as means of misconduct or imagination.

Meanwhile, Federal Reserve officials are likely to collect vehicles because they are seeking to protect the central bank, and it is not only a column of US financial markets but also for the world.

Powell State has ended as president in May, but his term as a ruler extends until 2028. While the predecessors may be moved from the Board of Directors when their time ended as a chair, Powell may feel that he is obligated to survive and protect the federal reserve independence now as Trump seeks to feed Cook.

Other conservatives may also lead to serving their conditions instead of step down early, Make the Federal Reserve more like the Supreme Court in this regard.

Trump is already His name is Stephen MiranChairman of the Economic House of Economists at the White House, to fill a vacancy on the blackboard left by Adriana Koger, which stepped before the end of her term in January.

Trump’s call to low rates has been supported. More than that, Miran also Cowrotte paper in 2024 Call Comprehensive reform from the Federal Reserve Bank This reduces his independence.

Analysts at Jpmorgan warned that the appointment of Miran represents “I am an existential threat” To the Federal Reserve because it indicates the intention to amend the Federal Reserve Law and change the authority of the central bank.

It is not clear whether Miraan will be reset to the Federal Reserve where the White House is looking for someone to replace Powell as president. But in both cases, the Federal Reserve will have three specific rulers from Trump.

And if Trump is able to nominate a fourth ruler, this would raise the balance of the seven -member council. This is not enough for the impact of decisions on the 12 -member Federal Open Market Committee, however Axios recently indicatedThe majority of the Board of Directors will grant Trump appointed authority over the budget of the Federal Reserve Bank, employment, and even the selection of regional Federal Reserve Presidents.

These presidents are appointed by federal regional bank managers, but they are Taking into account the approval of the council. In February, there are five -year periods for all bank presidents Its validity is scheduled.

With Trump crossing unknown lands in his assault on the Federal Reserve, any effort to obtain a new candidate in the Federal Reserve will be confirmed by the Senate now will become a comprehensive battle.

“The illegal attempt to shoot Lisa Cook is the latest example of a desperate president looking for a scapegoat to cover his failure to reduce the costs of the Americans,” Senator Elizabeth Warren, a Democratic classification of the Senate Banking and Housing Committee, said in a statement on Monday evening.

“It is to eliminate an authoritarian authority that violates the federal reserve law in a flagrant way, and it must be overturned in court.”

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