Trump is once again targeting the Federal Reserve, this time focusing his ire on Governor Lisa Cook. He’s threatened to fire her, citing allegations of mortgage fraud.
Trump’s Attack on Fed Governor Cook
The accusations against Cook involve allegedly misrepresenting her primary residence on official documents. Reports suggest she listed an Atlanta property as her primary residence while simultaneously renting it out. This has led to a referral to the Department of Justice for a criminal investigation.
While Trump can remove a Fed governor “with cause,” some, like CNBC’s Steve Liesman, believe this is a politically motivated attack aimed at influencing the Fed, rather than a genuine concern about misconduct. Others argue that if Cook broke the law, it should be investigated regardless of political motivations. For now, Cook remains in her position.
Powell’s Shift and its Impact on Crypto
This drama unfolds as Fed Chair Jerome Powell adopted a more dovish stance at the Jackson Hole conference. He hinted at potential rate cuts due to a slowing economy and labor market challenges. While he stressed that decisions would be data-driven, not political, the possibility of rate cuts has sent ripples through financial markets.
This is particularly relevant for the crypto world. Historically, rate cuts boost liquidity, often leading to increased investment in riskier assets like Bitcoin and Ethereum. So, Powell’s shift could be good news for crypto investors.