The president of the USA, Donald Trump, dismissed Lisa Cook, a governor of the Federal Reserve on Monday, to whom the Government has decided to investigate for a possible mortgage fraud, according to a letter published in her social network Truth Social.
In the letter addressed to Cook, which bears the White House letterhead, the President invokes article II of the Constitution and the Federal Reserve Law of 1913 and declares: “(…) You are eliminated from your position at the Board of Governors of the Federal Reserve with immediate effect.”
The president, who already claimed the resignation of Cook last week arguing that “has done something bad,” he cited the criminal investigation recommendation of the Federal Housing Financing Agency, Bill Ablicte, to the US attorney general, PAM Bondi.
“As established in the criminal recommendation (…), there is enough reason to believe that you may have made false statements about one or more mortgage agreements,” writes Trump, who argues that Cook signed two mortgages for a “primary residence” in two different states in two weeks.
You may be interested: Trump threatens to fire the governor of the Federal Reserve, Lisa Cook
An American president can dismiss a member of the Board of Governors of the FED but only for just cause, which usually implies bad praxis or criminal behavior, but never a disagreement in the field of monetary policy.
However, Trump’s arguments about that cause to say goodbye to the Governor of the Fed under current laws trigger a legal battle is predictable.
In his letter, Trump said that USA “must be able to have full confidence in the honesty of the members responsible for establishing the policy and supervising the Federal Reserve” and argued that Cook’s alleged “negligence” calls into question his regulatory “competition”.
Cook, after the accusations of last week, rejected resign for “intimidation” and said he would respond with “precise information” to the issues about his financial history, which was taken “seriously.”
The offensive against Cook, who was nominated for the position by the former Democratic President Joe Biden, adds to the pressure that the Trump administration is exerting on the Fed and its president, Jerome Powell, to which he claims to lower the types.
With EFE information
Inspy, discover and share. Follow us and find what you are looking for on our Instagram!
