Who is Lisa Cook, and what did the Federal Reserve Governor accuse?

President Donald Trump called for a US Central Bank’s rule, a step that has long escalated his hostility with the Foundation.

Late on Monday, he was actually posted on his social account, a message addressed to Lisa Cook, saying that it was removed from the Federal Reserve Council due to allegations of fraud in the mortgage.

Mrs. Cook pledged to bring a legal case to challenge this step. There was a cry from the Democrats, who say this is up to unprecedented political intervention by Trump.

Mrs. Cook was appointed as a ruler of the Federal Reserve in 2022 by Democratic President Joe Biden, to become the first African American to serve in this role. Its period was scheduled to end in 2038.

She previously worked on Barack Obama’s Economic Consultants and worked in the US Treasury.

There are seven rulers of the Federal Reserve and play a major role in the US -state monetary policy.

They constitute the majority of the committee that decides the level of interest rates in the United States and aims to maintain stable prices and low unemployment as possible.

Mrs. Cook has voted in recent months to maintain interest rates this year.

In fact, the President indicated allegations that Mrs. Cook may have excessive records to obtain a mortgage.

He said that she signed two documents, two weeks are about to be home in different states, both of which are from her basic residence.

“It is unreasonable that you were not aware of your first commitment when making the second. It is impossible to intend to honor the two.”

CNN Review and review The relevant mortgage documents and found that they are demanding basic housing, but it is unclear whether they were informed either the lender.

Mrs. Cook was not accused of any violations and in a statement she said she would fight her dismissal because Trump had no reason to release her.

As the Central Bank of the United States, the Federal Reserve is responsible for managing monetary policy in the country, which enhances stability in the financial system, and the organization of other institutions and tasks.

One of the most obvious activities you accomplish is interest rates. This has a significant impact on the nation’s financial conditions by affecting the amount of money that people can borrow.

The Federal Reserve is working as a federal agency and is considered independent in the government – its decisions do not require the approval of the president, although it is responsible to Congress.

This question can become the subject of an intense legal battle.

The Federal Reserve Law does not grant the president’s license to remove the Federal Reserve official at the will, but, as Trump pointed out in his letter to Mrs. Cook, he allows him to do so “for the reason.”

Trump was martyred as a “criminal referral” against Cook – after his ally, he recently called on housing financing organizer to investigate MS Cook for fraud in mortgage. But it is not clear whether an investigation has been opened, and Mrs. Cook has not been accused of any crime.

In addition to Mrs. Cook’s denial of any reason for her dismissal, legal experts showed complaints. Upon announcing that a case will be filed on this case, Cook’s lawyer said that Trump’s efforts “lack any realistic or legal basis.”

In his own statement, the Federal Reserve highlighted that there is a high tape for the president to remove a ruler for a reason: “Long cases work and protect the removal of conservatives as a vital security, ensuring that monetary policy decisions are based on data, economic analysis, and long -term interests of the American people.”

The market’s reaction to Trump’s move has been relatively tame so far – as it seems that investors are waiting to see if the dismissal has already happened. However, there was a sale of US government bonds on Tuesday, which hints that some investors were concerned about the independence of the Federal Reserve.

Trump spent most of his second presidency pressure on the Federal Reserve, calling for reducing interest rates Powell to reduce the cost of borrowing for American companies and consumers. The scope currently targeted 4.25 to 4.5 %.

Central banks usually reduce rates in an attempt to enhance growth. But there is a balanced act, because higher interest rates help keep inflation under examination. Inflation treatment is another Trump’s priority.

Low rates can also help us exporters and reduce the trade deficit in Trump’s economic policy.

Powell has so far rejected the decline in prices since Trump took office, but he hinted at a reduction in September.