Trump fires Fed board member Lisa Cook. "We will soon have a majority"
Cook stated that Trump does not have the authority to fire her and that she will not resign. Her lawyer stated that they intend to take "whatever action is necessary to prevent" Trump's "illegal action"
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Donald Trump has decided to oust Fed board member Lisa Cook following accusations of falsifying mortgage records: an escalation in the US president's battle to exert more control over the US central bank.
Late in the evening, the US president actually confirmed this strategy: Trump declared that he will soon have a 'majority' of his own nominees on the Federal Reserve Board of Governors who will support his desire to cut interest rates. "We will have a majority very soon," he said, and "once we have a majority, the housing market will change and it will be great. People are paying interest rates that are too high. That is the only problem we have. We have to lower the rates a little bit."
"Because of Powell and his high interest rates, the housing market is lower than it could be," he continued. "We will resolve this issue very quickly."
In a letter published Monday on Truth Social, Trump said he had identified "sufficient cause" to fire Cook, the first black woman to serve on the Fed's Washington board, based on allegations that she made false statements on one or more mortgage loans. The move, which has weighed on the dollar, could give Trump another chance to appoint a Fed board member as he continues to pressure officials to lower interest rates.
Cook stated that Trump does not have the authority to fire her and that she will not resign. Cook's lawyer, Abbe Lowell, said they intend to take "whatever action is necessary to prevent" Trump's "illegal action".
