Trump fires Fed Governor Lisa Cook, cites mortgage fraud claim

President Donald Trump expelled Federal Reserve Governor Lisa Cook on Monday. His truth is socialAn unprecedented move and an important increase in attacks on the US Federal Reserve.

“In accordance with my authority in accordance with Article II and 1913 Federal Reserve Law of the United States Constitution and 1913, you will immediately enter into force from your position in the Federal Reserve Board of Directors,” Trump.

CNBC reached the Federal Reserve for comment.

Trump’s movement pushes the Federal Reserve to the unprotected area and will probably lead to a legal conflict that could be able to enter the High Court.

The Trump administration claims that Cook, who was nominated by former president Joe Biden in 2022, also made a mortgage fraud, which is allegedly calling two different properties as its primary residence.

Federal Housing Finance Agency Director Bill Pulte, FED President Jerome Powell’s open Occupational critic, accused the cook on August 20 to the public and sent a criminal referral to the Ministry of Justice.

In his letter, Trump specifies the criminal guidance and said that it was enough to believe that you have made false declarations about one or more mortgage agreements, “he said.

“For example, as described in detail in the Penal Protection, you signed a document that proves that a property in Michigan will be your primary residence for next year.”

“Two weeks later, you signed another document that you will have a primary housing for a property in Georgia.”

Trump claimed that Cook was “not aware of” he is not aware. ” [her] The first commitment in doing the second. “

After Pulte’s allegations began to walk around last week, Trump quickly wrote Cook’s resignation. A social media post “The cook must resign, now !!!”

Cook said in a statement the same day, “Some questions in a tweet because of some of the intention to go down my position,” he said.

Two days later, Trump said he would cook if he didn’t resign.

“What he did was bad, Tr Trump said on August 22 to journalists.

Trump’s fire will probably trigger a legal reckoning. If a judge allows Cook to continue to serve his role while performing legal proceedings, the Supreme Court can join, New York Times Was Noted.

The Congress prevented the President’s authority to ignite a Fed governor unilaterally. 1913 Federal Reserve LawThis states that the President can only do this for “reason”. Although the law does not explain what is the “reason”, it is historically understood that the task means abuse or injustice.

If Trump is ultimately successful in releasing Cook, he will be able to nominate his place and reshape the FED’s board of directors for the next few years. Fed governors typically serve 14 years of periods. Cook is the first black woman to serve as the governor of the Federal Reserve.

Christopher Waller and Michelle Bowman, two of the existing seven -fed governors are appointed. Trump nominated Powell as the Federal Reserve President in 2017.

Earlier this year, another place was opened, where Adriana Kugler suddenly resigned and gave another seat to fill Trump. He nominated Stephen Miran, the President of the Council of Economic Consultants to fill the empty seat.

Movement makes surrounding worries worse Independence of Federal Reserve Under the Trump administration.

Trump has repeatedly criticized his central bank and chair for not lowering short -term interest rates.

Powell, even if the President threatened to expel him before the end of next year, opposed Trump’s pressure.

However, on August 22, Wyoming, the Central Bank’s annual symposium in Jackson Hole, said Powell, conditions “FED” may guarantee interest rates as it progresses carefully.

This is developing news. Please check again for updates.