Trump Demands Fed Governor Cook Resign Over Mortgage Fraud Claims
President Donald Trump has called for Federal Reserve Governor Lisa Cook to resign immediately after claims of possible mortgage fraud. The allegations came from Bill Pulte, Director of the Federal Housing Finance Agency and Trump ally, who asked the Department of Justice to investigate. He claimed Cook may have misrepresented two homes in Michigan and Georgia as her primary residence in 2021 to get better loan terms.
Trump repeated the demand strongly on social media, saying Cook should step down without delay. This has raised concerns about political pressure on the Federal Reserve, which is expected to act independently of the White House.
Traders are now waiting for the US inflation data, which is the May PCE Price Index, expected on Friday. This report could give clues about the Fed’s next steps regarding interest rates.
In Switzerland, the Swiss National Bank (SNB) shared its economic update for the second quarter. It expects the country’s economy to grow by 1 to 1.5% in 2025. However, it also warned that global trade problems could hurt Switzerland’s growth. The SNB kept its interest rate at 0% but said it may cut it further if inflation stays low.
Impact:
The weak US dollar could push investors toward safer currencies like the Swiss franc. The upcoming inflation data might affect market direction and possibly move the USD/CHF pair further.