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President Donald Trump said he immediately removes the official sphere of Lisa Cook’s federal reserve system from his position, the main escalation in his battle against the US Central Bank.
In a report made on his social media platform, the truth of the social, Trump outlined a letter addressed to prepare in which he informed her of his decision to remove it from the Bank’s Council with an immediate effect.
He said there were “sufficient reasons” to believe that she made a mortgage and referred to the constitutional powers, which, he said, allowed him to remove it.
In response, Cook said Trump had no powers to dismiss her and she would not resign.
“President Trump allegedly fired me” in the case “if the law does not exist, and he has no powers to do so,” Cook said in a statement.
“I will not resign. I will continue to fulfill my duties to help the American economy as I have been doing since 2022,” she added.
The federal reserve system has not yet commented on the announcement of the president on Monday.
Trump has increased the pressure on the Fed – especially its chairman Jerome Powell – in recent weeks that he perceived as a reluctance to the Central Bank to reduce interest rates. He repeatedly sailed the possibility of firing Powell.
It is believed that his decision to dismiss Cook, which is one of the seven members of the Fed Council, and the first African-American woman who played the role will be unprecedented in 111-year history of the Central Bank.
It can also raise legal issues, and experts believe that the White House should demonstrate – potentially in court – that it has a sufficient reason for its dismissal.
According to Trump’s letter, Cook signed one document indicating that the property in Michigan will become its main residence for the next year.
“Two weeks later, you signed another document for property in Georgia, saying it will be your main residence next year,” the President said.
“It is impossible for you not to know about your first commitment to perform the second,” he wrote.
Last week, the President called for the resignation of accusation of a mortgage fraud, which was first made in a public letter from the housing regulator Bill Papte, Trump’s ally, Prosecutor General Bondi.
The housing regulator called a letter “criminal referral” and urged the Ministry of Justice to investigate. It is unclear whether the investigation was open.
Cook told BBC in a statement last week What she learned about the allegations of the media, and the case followed from the application for a mortgage, which she made four years ago before entering the Central Bank.
“I do not intend to make fun of me to get out of my position from some issues raised on Twitter,” she said.
“I intend to perceive any questions about my financial history as a member of the federal reserve system, and therefore I collect accurate information to answer any legitimate questions and give the facts.”
If Cook or Fed resist Trump’s decision to suppress it, experts believe that this can cause a confrontation between the Central Bank and the White House. The Fed gained independence from the US government in 1951.
Trump expressed an increase in hostility in Powell, calling him a “numbskl” and “stubborn moron” because he did not support the president’s calls for rapid, big cuts in borrowing.
But last week, Powell raised the expectations that would decrease the interest rate In September. Speaking to the central bankers who gathered at Jackson Hol, Wyoming, he also claimed that the inflationary influence of Trump tariffs could be temporary.
The US dollar has weakened the major world currencies in Asian trading on Tuesday, as investors argue that the replacement of the Cook will probably push for a greater reduction in interest rate.
