President Donald Trump fulfilled his threat and He fired the governor of the Federal Reserve (Fed), Lisa Cook, amid accusations of mortgage fraud.
According to analysts, it is an unprecedented measure, which represents a significant escalation in the president of the president against the Fed, which he has blamed for taking too long to lower interest rates.
Cook was recently subject to criticism by Trump and members of his administration for allegedly committing mortgage fraud. The Department of Justice has said that it plans to investigate those accusations that were initially raised by the director of the Federal Housing Financing Agency, Bill Ablicte.
The president had asked Cook’s resignation on August 20 After Williamuffa, director of the Federal Housing Financing Agency of the United States (FHA), appointed by Trump, accused her of declaring two of her mortgages as main residences. The United States Department of Justice declared to be investigating the matter.
“I have determined that there is enough cause to dismiss her from his position,” Trump said in a letter to Cook published on his social truth platform.
Prior to the announcement, Cook, the first black woman to be part of the Fed Board, said she had “no intention of being intimidated to resign” after Trump last Wednesday requested her resignation based on accusations about mortgages she has in Michigan and Georgia.
Cook’s dismissal marks an escalation in Trump’s attempt to restructure the composition of the Federal Reserve dome, who has been pressing the Central Bank to implement drastic cuts of interest rates at a time when Fed officials have kept them stable amid the persistent concern for inflation.
In addition, the president has also repeatedly threatened to say goodbye to the president of the Federal Reserve, Jerome Powell, who was nominated by Trump during his first mandate in the White House and subsequently nominated for a second mandate for Biden.
According to analysts, it is not clear if Trump has the legal authority to fire Cook for these accusations. It is not even ruled out that dismissal can be challenged in court, even reaching the Supreme Court.
Lisa D. Cook assumed the position of member of the Board of Governors of the Federal Reserve System on May 23, 2022to cover a vacant mandate that ends on January 31, 2024. It was re -elected for the Board on September 8, 2023 and swore its position on September 13, 2023, for a mandate that ends on January 31, 2038.
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