Trump Firing of Federal Reserve Gov. Lisa Cook Is Cause for Alarm

US President Donald Trump’s recent attack on the independence of the US Federal Reserve, and thus the stability of the United States and global financial systems, came in his attempt to shoot on Monday Lisa Cook, the ruler of the Federal Reserve.

This step is his recent attempt to force the US Central Bank to provide bids – that is, reduce interest rates in an attempt to inhibit economic growth on its hour. This comes after a campaign over years against Federal Reserve Chairman Jerome Powell, whom Trump called himself in this position.

US President Donald Trump’s recent attack on the independence of the US Federal Reserve, and thus the stability of the United States and global financial systems, came in his attempt to shoot on Monday Lisa Cook, the ruler of the Federal Reserve.

This step is his recent attempt to force the US Central Bank to provide bids – that is, reduce interest rates in an attempt to inhibit economic growth on its hour. This comes after a campaign over years against Federal Reserve Chairman Jerome Powell, whom Trump called himself in this position.

This step against Cook, the first black woman to be appointed as a ruler in the Federal Reserve, is unprecedented and legally doubtful, as the president can only remove the ruler of the Federal Reserve of the case. Trump and his administration officials He says Cook Violations On the mortgage request before joining the federal reserve The same accusations Bill Polly, appointed Trump to lead the Federal Housing Agency, which was presented against the New York Prosecutor Leitia James, who previously achieved in Trump and the Democratic senator Adam Chef, who led the investigation of the House of Representatives in Russia while working as a representative of California.

This step against Cook is part of the broader Trump administration’s assault on the independence of economic agencies and the actors that challenge it. Trump recently Overwhelm The head of the work statistics agency that collects the monthly unemployment data, which is a main measure of the health of the American economy. The ability of the United States government to track inflation is also In doubt After Trump cleansed, making it difficult for companies and investors to collect accurate information about prices and spending.

Cook said it will not resign and will continue to implement its duties in the Council of Conservatives in the field of the seven federal reserves, which is part of the 12 -person committee that determines interest rates, width of money, and the thermostat of the entire global economy. Markets It was a reaction With doubts about Trump’s ability to pay on the federal reserve, but they pointed to concerns about the risk of numerous inflation as the independence of the 112 -year -old US central bank is facing a challenge as it has not happened before.

Ironically, Trump’s efforts To provide the Federal Reserve after the most important central bank in the world already already will reduce the short -term interest rates.

Powell said in a The main speech In Jackson Hall, Wyoming, last week, the Federal Reserve may have to trim short-term lending rates to respond to the challenges in Trump’s economy-but not because Trump was asking for less interest rates for years. Instead, Powell said that the mixture of definitions, which are bad for inflation, and the labor market restricted by Trump’s migration, which is bad for employment, makes difficult monetary policy. Powell said the job market is very weak, and the Fed Reserve Bank will have to reduce interest rates in order to avoid the collapse of a car worse than just the high prices that Trump was elected the second time.

“In general, although the labor market is in a state of balance, it is a kind of strange balance that results from a noticeable slowdown in both supply and demand for workers,” Powell said in his speech. “This unusual situation indicates that the negative risks facing employment are increasing. If these risks are fulfilled, they can do this quickly in the form of sharply higher hairstyles and high unemployment.”

All markets have been baked at a very moderate interest rate from the Federal Reserve in September, but this is less than Trump’s cash injection. High inflation – possibility corridors with a series Bin Steel, Director of International Economy at the Council of Foreign Relations, said that the new customs tariff that lands in the third quarter – can hinder the initial federal reserve plans. However, the attempt to topple the ruler of the Federal Reserve is concerned.

“I think that the chef release, if it happens, is a huge deal. He saidHe said.

Nevertheless, Trump has diversified his efforts to reshape the US Central Bank in his own image to present his presentation, despite the bank ENARED Charter Independence, which is the rock on which the hardness of the US dollar is located, or rather Rest.

Independence interference From the central bank is always risky, but in particular when this central bank is the most important in the world. The American Federal Reserve defines courses and features not only from American monetary supply, inflation and economic growth, but also in almost every economy in the world.

But it is absolute to take it when there is a lot of evidence at hand to destroy the independence of the central bank in seeking economic sugar in the short term is a long -term pain recipe. Take Türkiye.

Turkish President Recep Tayyip Erdogan, frustrated because the Turkish Central Bank was using Orthodox tools such as high interest rates to tame inflation, replacing the bank’s leadership in Carronics and ordered the bank to open the pillar money to create illusion with economic growth. Spigots opened the Turkish economy, which was overwhelmed by cheap money due to discounts in the prices required in the presidency, which was issued with inflation above 80 percent annually, before Erdogan declined. Even years later, with the return of professionals on his head, Türkiye Struggle to collect Low inflation is less than 30 percent.

Trump is in his third campaign of the presidency, and even more than that, he promised that he would seek this Weakening the dollarMake it It is difficult to tradeand Unleash Inflation, and Go next The institutions that made America great the first time. The only amazing thing is how quickly that ball swings.