Trump Fires Fed Governor Lisa Cook – Dollar Under Pressure
President Donald Trump has fired Federal Reserve Governor Lisa Cook with immediate effect. The White House said the decision was made due to alleged misconduct, pointing to issues linked with mortgage fraud. This move is unusual and has triggered a debate about the limits of presidential power over the Federal Reserve.
Cook has rejected the claims and refused to resign, calling the decision unlawful. Her legal team confirmed they will fight back in court. Many legal experts say this case could end up in the Supreme Court, since it is unclear how much authority the president has to remove Fed governors. The Federal Reserve Act allows removals only “for cause,” but that term is not clearly defined.
This action has raised fresh concerns about Fed independence, which is already under pressure as Trump pushes for lower interest rates. Analysts believe the removal could give the administration more influence over future monetary policy.
In the forex market, the US dollar weakened after the news. Bond yields also showed a split reaction—short-term yields fell on expectations of easier policy, while longer-term yields moved higher, signaling market uncertainty.
For traders, the firing has created a new layer of risk around the Fed’s decision-making. A weaker dollar could boost other major currencies like the euro, yen, and Australian dollar in the short term.
Impact:
The US dollar might remain under pressure as markets assume more political influence on the Fed. Forex traders