US President Donald Trump called on Wednesday to resign the Governor of the Federal Reserve Lisou Cook based on the claims of his close ally, the Federal Director of FHFA Bill Pulte, who asked the Ministry of Justice (DO) to explore the Cook over the alleged mortgage.
If the Lisa Cook was to resign, it would create further opening high bets on the Federal Reserve Council at a time when Donald Trump openly pushes an aggressive reduction in interest rates from Fed Jerome Powell.
What are the accusations of Lise Cook?
According to the recommendations he saw Bloomberg News, Trump Ally Bill Pulte urged the General Prosecutor of Pam Bondi and the official Ed Martin to explore Lisu Cook for two mortgages gained in 2021.
The letter claims that Governor Lisa Cook may have falsified records of assets and banking documents to ensure more favorable rental conditions. Specifically, it is accused of signing the provisions on the occupancy on two separate mortgages – one in Michigan and the other in Georgia – both declare real estate for their primary residence within a few weeks apart.
One of these properties, Pulte claims, was later listed and raised questions about potential distortion. He called on the prosecutor to explore whether her actions represent mortgage fraud under US criminal laws.
How does it associate with a wider Trump campaign against the Democrats?
The assignment represents the expansion of the ongoing legal and political campaign Donald Trump focused on democratic personalities. His administration has already equalized the accusations of mortgage fraud against significant democrats, such as Senator Adam Schiff and the General Prosecutor of New York Letitia James, both of whom are long -term criticism of the former president.
Trump’s allies also bring indirect pressure on Fed chairman Jerome Powell to which the US President has repeatedly attacked what he calls “late” and “weak” decision of monetary policy. Trump promised to replace Powell a chair that has committed itself to lowering interest rates.
What was the reaction of Lisa Cook?
On Wednesday evening, Lisa Cook did not comment on the accusation. The federal reserve system and the Ministry of Justice also refused to issue a statement. No fees have been submitted yet, and it remains uncertain whether Pam Bondi will act at the Pulte request.
Lisa Cook, a respected economist and the first black woman to serve on the Fed Council, was named in 2022 by President Joe Biden. It was subsequently nominated for the whole period lasting until 2038.
Why does it depend on the federal reserve system and American politics?
Cook’s potential resignation would give Donald Trump another opportunity to transform the body of the creation of the Federal Reserve Policy in its favor. After the early departure of Adriana Kuglerová, another named Biden, he filled one slot and installed his assistant Stephen Mirana as a temporary replacement.
This discussion therefore exceeds legal control. This could affect the trajectory of US monetary policy, investors’ sentiment and the central bank’s independence.
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