Who is Lisa Cook, and what is Federal Reserve governor accused of?

President Donald Trump demanded the abolition of one of the governors of the US Central Bank, which is a move that has been ongoing for a long time with the institution.

Late on Monday, he published a letter to Lisa Cook for his social account and said he had been removed from the Federal Reserve Board of Directors due to allegations of mortgage fraud.

The movement led to an attack saying that the democrats mean that the unprecedented political intervention.

Ms. Cook was appointed by the democratic President Joe Biden as the Federal Reserve Governor in 2022 and became the first African American to serve in this role. The period would end in 2038.

He previously worked at Barack Obama’s Economic Consultants Council and worked at the US treasury.

There are seven governors on the FED board of directors and they play an important role in determining the US monetary policy.

They are the most of the committee that decides the US interest rate level and aims to keep prices as low as possible.

Mrs. Cook voted in recent months to continue to wait for interest rates this year.

In the social duty of the truth, the president said that Mrs. Cook may have falsified the records to get mortgages.

He said that he signed two documents two weeks apart and proved that two houses in different states were the primary residence.

“It is not possible that you are not aware of your first commitment in doing the second. It is impossible to aim to honor both.”

Cnn He obtained and examined He found that the mortgage documents and two main houses demanded, but it is unclear whether he informed both lenders.

Mrs. Cook was not accused of any mistakes, and in a statement, Trump would fight with dismissal because there was no reason to expel him.

As the Federal Bank of the USA, the federal reserve is responsible for conducting the country’s monetary policy, promoting stability in the financial system, and organizing institutions and other duties.

One of the most visible activities he has done is to determine interest rates. This has a great impact on the financial conditions of the country by affecting how much money people can borrow.

The FED functions as a federal agency and is considered independent within the government – although its decisions are responsible for the Congress, the President does not require the approval of the President.

This question may be the subject of an intense legal war.

The Federal Reserve Law does not give the President a subtraction license at any time, but as Trump points out in his letter to Mrs. Cook, it allows him to do so for “why”.

Trump referred to as a “criminal referral” against Cook – after his ally, the housing financing regulator, the recently asked Mrs. Cook to be investigated for mortgage fraud. However, it is not clear whether an investigation was opened and Mrs. Cook was not accused of any crime.

In addition to rejecting that Ms. Cook had any reason to fire her, law experts showed skepticism.

Shan Wu, a former federal prosecutor, told CNN: “From now on, I think this is a kind of questionable, but frankly this [Trump] I trust and wait for him to challenge him. “

The market response to Trump’s movement has been docile so far – investors seem skeptical and waiting to see if the dismissal is really passing.

Trump, most of the second presidency of the Fed, by pressure on the FED, Powell’s interest rates to reduce the cost of borrowing for American businesses and consumers. The target range is currently 4.25%to 4.5%.

Central banks often reduced rates to increase growth. However, there is an act of balancing, because higher interest rates help to keep inflation under control. The fight against inflation is another Trump priority.

Lower rates, alleviating exporters and trade deficits, is a central board of Trump’s economic policy.

Powell has refused to reduce rates since Trump’s office, but implied a deduction in September.