US President Donald Trump dismissed Federal Reserve Governor Lisa Cook late on Monday night. Trump gave this information in a post on his social media platform ‘Truth Social’.
Trump said in a letter posted on his Truth social platform that he was sacking Cook because he has been accused of fraud. The Bill Pulte appointed by Trump in the agency controlling the Mortege sector sector sector was made allegations last week.
Bill Pulte alleged that Lisa Cook had claimed two houses in N Eur, Michigan and Atlanta in 2021 to get better mortgage terms. Mortege rates on homes hired in the US are often high.
The removal of Lisa Cook was announced a few days after her statement in which she said that she would not leave her post, whileTrumpHad already asked him to resign.
Trump announced the decision, saying that he has constitutional right to remove cook. But doing so will raise questions on the control of Fed as an independent institution and the ways of working further.
This dismissal is likely to have a legal battle and Cook may be allowed to continue in his post until the case hearing. But Cook will have to fight his own legal battle as the victim, instead of the fed.
By removing Cook from the board of Fed, Trump will get an opportunity to make his favorite appointment. Trump has already said that he will appoint only those officers who will support the interest rate cuts.
