The Department of Justice has called on Federal Reserve Chairman Jerome Powell to dismiss Governor Lisa Cook over allegations of potential mortgage fraud involving properties she owns in Michigan and Georgia. The move follows the referral of the case to criminal court by a Trump-appointed real estate regulator, which sparked renewed interest in Cook shortly after President Trump publicly demanded her resignation. According to some, the backdrop to these demands is Trump's extensive efforts to influence the Federal Reserve, especially as he presses Powell to cut interest rates ahead of the 2025 election cycle. If Cook is dismissed, Trump will have the opportunity to appoint someone more supportive of aggressive interest rate cuts, bringing the composition of the Fed's Board of Governors closer to his preferences. Interestingly, Cook's dismissal will solidify the majority of Fed decision-making bankers appointed during Donald Trump's term.
Source: Bloomberg Financial LP
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appUnder the law, a Fed board member can only be removed for "good cause," which usually requires evidence of serious misconduct. Although the allegations against Cook are officially related to mortgage irregularities, they appear to be closely linked to Trump's ongoing campaign to exert political pressure on the Fed to ease monetary policy. At this point, the currency market, and in particular its reaction to this news, does not indicate that the market is overly concerned about this information.
The US dollar remains one of the best performing currencies in today's session. Source: xStation
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
