Reports say new evidence has seriously undermined President Trump’s campaign to fire federal governor Lisa Cook. At the FOMC meeting a few days away, Trump probably won’t be able to change the composition in time.
The market is already confidently predicting that the Fed will cut US interest rates in the coming days. Still, Cook’s continued presence will maintain the Fed’s independence and prevent Trump from radical restructuring.
The document supports the Fed Governor
Over the past few months, President Trump has been considering dramatic actions to impose cuts on US interest rates and has been aiming to fire Fed Chairman Jerome Powell. Powell himself ultimately became open to the rate cuts, but Trump is still affecting the Fed’s lawsuit and is about to fire Governor Lisa Cook in August.
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Like Powell himself, it is theoretically illegal for a president to fire a federal governor. If Trump succeeds, he may be able to control the FOMC.
This violation of Fed independence can have great consequences, which has made industry observers very nervous:
But new evidence could help the federal governor stay in her position, according to a new report from Reuters. The Trump administration’s complaints focused on accusations that she committed mortgage fraud.
However, apparently, she declares a villa with alleged and unjust property, clearly indicating that it is not her main residence. This would prove that no mortgage fraud was carried out.
Reuters had not released any related documents, but this evidence would cover Trump’s pretext to fire her.
Can this impact rate be reduced?
So why is Crypto Markets interested in this issue? President Trump is trying to completely rid Cook before the upcoming FOMC meeting. If he can replace her with a new acting federal governor, it could have an immediate impact on US interest rate cuts and other policies.
Still, the Fed was almost certain to cut interest rates already. This evidence does not necessarily mean that it is bullish for the code. More precisely, it prevents bearish scenarios.
Nevertheless, this is still very important. The FOMC meeting will affect token prices and whale activity, and dramatic actions could change the overall market.
From its current appearance, the Fed should not expect a big curveball before the meeting takes place. The market can predict, at least from this regulator, perhaps, the ongoing status quo.
