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
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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
