Trump's Bold Move: Battle for Federal Reserve Independence
President Trump has fired Federal Reserve Governor Lisa Cook, citing mortgage improprieties. Cook defies the termination, claiming Trump lacks authority. This move could spark a legal confrontation about central bank independence, affect interest rates, and challenge traditional boundaries between the presidency and monetary policy.
In an unprecedented move, President Donald Trump has dismissed Federal Reserve Governor Lisa Cook, citing allegations of mortgage borrowing impropriety. Cook contests the firing, asserting that Trump lacks the authority to remove her, setting the stage for a potential legal showdown over the central bank's independence.
This decision comes as Wall Street braces for Nvidia's earnings report on Wednesday. Market analysts anticipate the possibility of an interest rate cut in September, driven by signals from Fed Chair Jerome Powell and mounting concerns about inflation and labor market weakness.
Meanwhile, the U.S. dollar weakened against major currencies, and global stocks experienced mixed reactions. European markets declined, particularly in France amid political turmoil, with France's CAC 40 falling over 1%.
(With inputs from agencies.)
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