Shortly before the interest decision by the US Federal Reserve Fed, something is happening on the board: the director Cook can stay in office for the time being – Trump wanted to fire her. At the same time, one of his advisors moves into the committee.
In the dispute over the dismissal of a lecture by the US Federal Reserve Fed, US President Donald Trump suffered another setback in court. An appellate court continues to block the dismissal of Lisa Cook. Trump wants to get rid of Cook for alleged mortgage fraud. Critics accuse him of wanting to expand his influence on the central bank.
The US President had announced last month to relieve Cook with immediate effect from her office. Last week, a lower instance in the US capital Washington had temporarily put a stop to the President’s project. Cook had taken to court against Trump’s endeavors. The case could now land at the Supreme Court.
Cook denies the allegations
According to Trump, there are sufficient reasons for the assumption that she had given incorrect information in one or more mortgage contracts. Cook then announced legal steps through her lawyers. Trump shouldn’t call her down at all, argued Cook. She denied the allegations. Cook continued, even if she should have unknowingly made false information, this was done years before taking office at the Fed when taking a private mortgage.
The judge of the lower court instance had argued, among other things, that the US President was only allowed to dismiss a member of the FED board “for valid reasons”. So someone could not be released solely due to behaviors from the time before taking office. She also wrote that the public interest in the independence of the Fed spoke for Cooks reinstatement.
Trump consultant moves to the board
Although he has to put on a setback against Cook, the President received one of his business advisors to the Fed board. Despite severe concerns, Stephen Miran has been confirmed as a temporary solution on the board of the US Federal Reserve. The US Senate voted on Monday evening (local time) with a narrow majority for the occupation. Miran takes the place of the retired FED officer Adriana Kugler until the end of January 2026.
At the beginning of August, the Fed board member Kugler surprisingly resigned. Trump sensed his chance to place one of his confidants. Because for months he has been in vain for interest reductions and does not get it from the central bank. He has repeatedly attacked Fed boss Jerome Powell.
Interest stands on
Miran’s confirmation and the court decision to Cook come just a few hours before the start of a two -day session, in which the Federal Reserve puts the key interest rate to the test. Analysts assume a reduction after the labor market in the United States had recently remained behind the expectations. Miran could speak for further interest reductions at the future sessions – as the president has been demanding for months.
Trump argues, for example, that the Americans could no longer afford real estate due to the high interest rate. In addition, loans could boost the economy on better conditions – and bypass risks due to the high government debt of the United States. Inflation could continue to heat too low. Therefore, Fed boss Powell has so far supported a more restrictive course.
