U.S. President Donald Trump ignited a political firestorm this week by ordering the dismissal of Federal Reserve Governor Lisa Cook, triggering market turbulence and legal uncertainty.
In a letter to Cook—the first African-American woman on the Fed’s board—Trump accused her of mortgage loan improprieties, claiming she listed two properties as primary residences in 2021. The move, described as 'unprecedented' by analysts, raises questions about presidential authority over the traditionally independent central bank. 💼⚖️
Cook fired back, stating Trump has 'no authority' to remove her from a role she was appointed to by President Biden in 2022. 'I will continue my duties to support the American economy,' she declared through her lawyer. Meanwhile, Dow Futures and Asian stocks dipped Tuesday amid fears of renewed trade wars and export controls hinted at by Trump. 📉🌏
Political Repercussions & Market Reactions
This isn’t Trump’s first clash with political rivals—Senator Adam Schiff faces similar fraud accusations. Analysts warn the Fed’s independence is now under scrutiny, with markets reacting nervously. The Wall Street Journal reported the S&P 500 slid 0.8% in early trading, while Japan’s Nikkei fell 1.2%. 💥
Legal experts say Cook’s case could spark a constitutional showdown. 'This is uncharted territory,' said one economist. 'The Fed’s autonomy is key to global confidence.' 🔍
