Trump Revives Push to Fire Fed Governor Cook, Reigniting Pressure for Rate Cuts

[Financial News]  


U.S. President Donald Trump sent a letter to Federal Reserve Governor Lisa Cook, notifying her that he was "considering" firing her.
The Financial Times reported on the 7th, local time, citing two sources. It said Trump had brushed aside a June Supreme Court ruling that blocked the dismissal and moved to restart the effort.
Trump had previously tried to remove Cook in August last year over allegations of mortgage fraud. The move was based on documents submitted by William J. Pulte, a Trump loyalist who was then head of the Federal Housing Finance Agency (FHFA). In those documents, Cook claimed two homes as her primary residence. Trump called that fraud and pushed to fire her. Pulte later received credit for the effort and was appointed acting Director of National Intelligence (DNI).
Cook's side maintains that she is innocent of the mortgage fraud allegations.
Abbe Lowell, Cook's lawyer, said, "These claims have now been shown to be baseless after more than a year," adding, "At the time, President Trump was trying to fire Governor Cook and interfere with the Fed's independence."
Economists and investors believe Trump's renewed push to remove Cook is driven by an attempt to pressure the Fed into cutting interest rates.
Even after installing Kevin Warsh, who is aligned with his views, as chair, Trump has found that Warsh is not aggressive about rate cuts. With calls for rate hikes also growing inside the Fed, Trump has once again turned to pressuring the central bank, they said.
Trump's pressure campaign against the Fed is also reflected in the investigation into Jerome Powell, the former chair. Last year, the Ministry of Justice investigated possible criminal charges, including misuse of public funds, over the renovation of the Fed's Washington headquarters. The probe was later dropped amid backlash from Republican lawmakers.

[email protected] Song Kyung-jae Reporter