In a move that shook Wall Street and beyond, U.S. President Donald Trump announced on Monday he’s dismissing Federal Reserve Governor Lisa Cook over alleged mishaps in her mortgage loan applications. 😲 This unprecedented step raises big questions about presidential power vs. the Fed’s independence—and it’s already rattling markets from New York to Tokyo.
Trump’s official letter to Cook says he has “sufficient cause” to remove her because she marked two properties in Michigan and Georgia as primary residences on her 2021 loan documents, even though she didn’t immediately move in. Cook, a trailblazer as the Fed’s first African-American woman governor, fired back via her lawyer Abbe Lowell, arguing that “no causes exist under the law, and he has no authority” to boot her. She vowed to “continue to carry out my duties to help the American economy.” 💪
Meanwhile, investors are on edge. The Wall Street Journal and AFP reported Dow Futures dipped after the news, and Asian markets also slid on Tuesday as traders braced for Trump’s other threats—like new tariffs on trading partners and tougher microchip export controls. 📉 Could this be a preview of another headline showdown between the White House and Wall Street? Only time will tell.
Stay tuned for how this battle over the Fed’s independence unfolds, and what it could mean for your portfolio and the global economy. 🌎💼
Reference(s):
Trump orders dismissal of Fed Governor Cook, causing stocks to fall
cgtn.com
