Lisa Cook, a member of the US Federal Reserve Governor Council, is attending an open meeting of the Federal Reserve discussing the proposed reviews of the additional financial leverage criteria for the Council in the Federal Reserve Building in Washington, DC, on June 25, 2025.
Saul Loop AFP | Gety pictures
president Donald Trump It was launched on Monday Federal Reserve governor Lisa CookAccording to a message in His social realityAn unprecedented step and a great escalation of its attacks on the US Central Bank.
Trump immediately wrote: “According to my authority under Article Two of the United States Constitution and Federal Reserve Law of 1913, in its amended form, you were removed from your position in the Federal Reserve Council, actually immediately,” Trump wrote immediately.
CNBC has reached the Federal Reserve for Comment.
Trump’s step pays Federal Reserve In an unlimited area and it is likely to lead to a legal clash that can end up in the Supreme Court.
The Trump administration claims that Cook, which was nominated by the former president Joe Biden In 2022, the mortgage fraud was committed by naming two different properties, such as their initial stay at the same time.
Director of the Federal Housing Agency, Bill Boute, is an explicit critic of the President of the Federal Reserve Jerome PowellCook was publicly accused of fraud in the mortgage on August 20 and sent a criminal referral to the Ministry of Justice.
Trump cited criminal referral in his message and said, “There is a sufficient reason for the belief that you have made wrong statements about the mortgage agreements.”
“For example, as detailed in criminal referral, I signed one document that attests to the fact that a property in Michigan will be your basic residence for the next year,” Trump wrote.
“Two weeks later, I registered another document for a real estate in Georgia stating that your main residence will be for the next year.”
Trump claimed that he was “unreasonable” that Cook “was not aware of her first commitment when making the second.”
After Pulte’s claims began to circulate last week, Trump quickly called for the resignation of Cook, and writing in Social media publication This “must resign, now !!!”
Cook said In a statement On the same day that “there is no intention of intimidation to step down from my position because of some questions that were raised in a tweet.”
Two days later, Trump said he would shoot cooking if he did not resign.
“What I did was bad,” Trump told reporters on August 22.
Trump’s launch is likely to lead to a legal confrontation. the supreme court It can be involved if the Cook Judge allows the continuation of the service in its role during the operation of legal procedures, The New York Times noticed.
The Congress dug the unilateral fire of the President of the Federal Reserve in the Federal Reserve Federal Reserve Law of 1913Which states that the president can only do so “for the reason.” While the law does not clarify what constitutes a “reason”, it was historically understood that it means bad violations or spelling.
If Trump finally succeeds in removing Cook, he will be able to nominate her replacement and reshape the Board of Directors of the Federal Reserve Council for the next few years. Conservatives usually serve the Federal Reserve 14 years.
Two of the seven federal rulers, Christopher, Wald, and Michelle Bowman, are appointed by Trump. Trump nominated Powell to be the Federal Reserve Chairman in 2017.
Another spot was opened earlier this year when Adriana Kogerer He suddenly stepped down, giving Trump another seat to fill him. Nominate Stephen MiranChairman of the Council of Economic Advisors, to fill the vacant seat.
This step has worsening the surrounding fears Federal Reserve Independence Under Trump’s management.
Trump has repeatedly criticized the central bank and its president for not lowering interest rates in the short term.
Powell has so far resisted Trump’s pressure, even when the president threatened to launch him before his term with the president’s expiration next year.
Speaking on August 22 at the annual symposium of the Central Bank of Jackson Hall, however, he suggested that Powell Conditions “may require” interest rate discounts with federal reserve revenues “carefully“
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