After the Fed governor Cook’s Fed Governor, President Trump has not left many questions. Cook wants to complain about it. The US Federal Reserve itself announced that they would be adhered to judicial decisions.
Fed governor Lisa Cook is legally opposed to dismissal by US President Donald Trump. Trump lacks the authority to relieve Cook from the politically independent US Federal Reserve, her lawyer Abbe Lowell said. “We will submit a lawsuit to contest this illegal approach,” it said in a statement. Cook will continue to take office.
A legal contestation of Cook’s discharge could end in front of the Supreme Court. A spokesman for the central bank pointed out that in the “Federal Reserve Act” it was legally regulated that governors have a long term and can only be recalled by the President for an important reason.
The long term and the protection against dismissal are an “important safety precaution” to ensure that monetary policy decisions are based on the long-term interests of the US population. The central bank spokesman added that the bank would adhere to any judicial decision.
Possible successors?
Trump surprisingly said yesterday that Cook was released from her office at the Federal Reserve with immediate effect. He justifies this with supposedly false information Cooks in mortgage contracts. Among other things, she is said to have mistakenly stated that he has two first residence, one in the state of Michigan and one in Georgia. Cook, the first African -American woman in the Fed management committee, denies the allegations.
Meanwhile, the US President already has a candidate for the successor of Lisa Cook. “I think maybe I have someone in my head for myself,” Trump said yesterday at a cabinet session. However, many people are involved in the decision. The “Wall Street Journal” reported that possible candidates are the economic advisor Stephen Miran and former World Bank President David Malpass.
Uncertainty on the stock exchanges
On the stock exchanges, Trump’s constant attacks on the US Federal Reserve cause increasing unrest. The Dax hardly started today. A representative online survey by the broker Tradegate among around 2,000 people who deal with stocks or funds shows that concerns also grow with many private investors in the United States. The broker belongs to the Tradegate Exchange securities exchange, in which the German stock exchange is involved.
In the survey from July, a good three quarters of the respondents (76.3 percent) stated that their confidence in the US stock market had decreased because of the politics of the government there, and even “significantly” in 46 percent of them. Unhappation of only 17 percent have unchanged trust. Trump’s policy is causing uncertainty, said Tradegate manager Karsten Haesen. But there is no way around US tech values. “The dominance of companies such as Apple, Nvidia or Microsoft remains.”
