Trump calls on Fed Governor Cook to resign from mortgage claims
President Donald Trump has called on Federal Reserve Gov. Lisa Cook to step down after allegations over mortgages he holds in Michigan and Georgia.
U.S. stock futures are low after President Donald Trump fired Federal Reserve Gov. Lisa Cook and said he filed fraudulent mortgage applications.
“I have determined that there is a good reason to remove you from your position,” Trump wrote in a letter to the food posted on social media.
Cook replied that Trump had no authority to fire her and said he would not resign.
At 6:15am on ET, futures tied to the Blue Chip Dow fell -0.14%, while the Broad S&P 500 futures slipped -0.08%, while the Tech-heavy Nasdaq futures lost -0.06%.
The firing is Trump’s latest attack on Fed members. For months he again suggested on and off, firing Fed Chairman Jerome Powell or resigning him.
Since the Fed was founded in 1913, the Fed’s seven governor’s committee members have never been fired by the president before. The legality of Trump’s move is controversial, and if Cook challenges the fire, it could end up in court.
Trump care?
“If the president succeeds, the outcome will be important,” said Michael Ferroli, chief economist at JP Morgan.
The removal of Cook opens another location to the Fed Committee to fill the way Trump wants and give appointees a majority. Trump recently appointed Economic Advisors Council Chairman Stephen Milan to fill the seats vacant with the resignation of President Joe Biden’s appointee Adriana Coogler. GED Goverors Christopher Waller and Michelle Bowman are Trump’s appointees.
Powell’s term expired in May, and Trump is already beginning to come up with the names of candidates.
“The more relevant consequence of successful removal of cooks is that other governors could also be exposed to removal,” Ferroli said. “This is the opposite risk of inflation.”
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Medora Lee is a money, market and personal finance reporter for USA Today. You can contact her at mjlee@usatoday.com and subscribe to our free daily money newsletter for personal finance tips and business news every Monday to Friday morning.
