US President Donald Trump appealed to the Supreme Court to dismiss Lisa Cook, a member of the Federal Reserve Board.
Trump’s emergency appeal today has led to debate about central banks returning to the agenda. This step is said to be historically important to the US economy.
In particular, the request comes a day after the Fed cut interest rates for the first time in months. This is the first time in the Fed’s 111-year history that a president has taken a seated member in office if Trump’s request is accepted.
The Trump administration alleged ethical violations in Cook’s submission. Cook reportedly claimed he obtained more favorable mortgage terms by declaring the two separate homes his “major residences.” Also, some documents revealed that he had declared his second property as a “home of vacation.” Trump announced his firing of Cook on August 25th, but on September 10th, US District Jia Cobb vacated the firing. Cobb said Trump had not proven that Cook had harmed his position in the Fed or public goods.
The Trump administration immediately appealed the decision, but the appeals court also rejected a request to halt the process. The case, currently standing before the Supreme Court, can set both power and power precedents that the president can do beyond the central bank.
Meanwhile, Trump has long criticized Fed Chairman Jerome Powell for his high profit margin policy. Critics argue that the real purpose of Cook’s banishment is to put pressure on the Fed and accelerate the interest rate reduction process.
*This is not investment advice.
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