U.S. President Donald Trump has taken an unprecedented step, announcing the dismissal of Federal Reserve Governor Lisa Cook over alleged improprieties in obtaining mortgage loans. Cook, the first African-American woman on the Fedâs governing body, was appointed by former U.S. President Joe Biden in 2022.
In a letter to Cook, Trump said he had âsufficient cause to remove you from your positionâ because in 2021 Cook indicated on documents for separate mortgage loans on properties in Michigan and Georgia that both were a primary residence where she intended to live.
Cook fired back in a statement via her lawyer Abbe Lowell: âno causes exist under the law, and he has no authorityâ to remove her. âI will continue to carry out my duties to help the American economy,â she said.
Market Reaction
The fallout was swift. Dow Futures slipped, and Asian stocksâfrom Tokyo to Singaporeâticked lower on Tuesday, as investors digested the political shake-up and Trumpâs renewed threats to levy tariffs on U.S. trading partners and impose export controls on microchips.
Whatâs at Stake
The Federal Reserve is designed to operate independently, balancing inflation and employment targets. Trumpâs move raises questions about the limits of presidential power over the worldâs most influential central bank. If Cook challenges the order in court, legal experts say the case could redefine those boundaries.
Looking Ahead
As markets and policymakers adjust to this unexpected disruption, global investors will be watching Washington closely. The outcome could shape not only the future of U.S. interest rates, but also confidence in markets from New York to Asia.
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Trump orders dismissal of Fed Governor Cook, causing stocks to fall
cgtn.com
