Trump vs. The Fed: A Presidential Power Play
U.S. President Donald Trump announced the dismissal of Federal Reserve Governor Lisa Cook over alleged mortgage improprieties, challenging legal norms of presidential influence on monetary policy. This unprecedented move raises questions about executive power. Cook denies the accusations, emphasizing her continued commitment to her role, while legal experts debate the implications.
In an unprecedented move, President Donald Trump has fired Federal Reserve Governor Lisa Cook, citing alleged misconduct related to mortgage loans. This decision tests the traditional boundaries of executive influence over the ostensibly independent U.S. monetary policy institution.
Cook, the first African-American woman on the Federal Reserve Board, refutes Trump's accusations, arguing that there is no legal basis for her removal. She remains committed to her role, as legal experts speculate on the implications of this presidential maneuver.
Trump's actions come amid broader efforts against diversity and inclusion within government, and the Federal Reserve now faces potential challenges to its autonomy, as financial markets react to possible shifts in monetary policy.
(With inputs from agencies.)
Google News