Donald Trump moves to fire Fed governor
“The executive force of the United States is given to me as the president, and as president, I have a serious duty that the United States’s laws have come into force loyal to loyalty,” he wrote.
“I have determined that it is necessary to implement the law loyalty immediately.”
US President Donald Trump at his Oval office on Monday.Credit: Bloomberg
Fire is likely to touch a legal war, and Cook can be allowed to remain in the seat while playing a lawsuit. Cook would have to fight the legal war as a wounded party instead of the FED.
The last effort of the administration to check one of the few independent agents in Washington.
Since Trump did not cut the short -term interest rate, he repeatedly attacked the Fed’s chair Jerome Powell and even threatened to expel him.
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Forcing Cook from the FED’s board of directors will offer Trump an opportunity to appoint a loyal. Trump said he would only appoint authorities to support the cutting rates.
Powell pointed out that last week, the FED could reduce rates soon, even if inflation risks remained moderate.
Meanwhile, Trump will be able to replace Powell in May 2026, when Powell’s era ended. However, the fact that 12 members of the Fed’s interest rate determination committee vote for raising or reducing interest rates, so even the change of the chair may not guarantee that the Fed policy will change as it wants.
