Controversy over Lisa Cook, Fed Governor rejected by Trump, continued yesterday. The US vice -president insisted that Trump should have the right to dismiss the governors. One of the candidates who succeeded Jerome Powell as a fed chair, Kevin Husset suggested that Cook takes a temporary brake, while the ongoing proceedings against him for alleged frauds were underway. Given the statements made by Trump’s loyalists, no one can help, but wants them to apply similar standards to their own loyalists, Comorzbank’s FX analyst Antje Puffed note.
The fight for Fed Freedom has just begun
“This does not mean that Cook should stay in the office if he is found guilty of fraud. However, it is only the allegations made by another highly loyal Trump supporter (who must have been closely involved in the activities of the fed officers). Cook must be suit against his dismissal soon.
“When we recently expressed concern about Fed’s freedom in terms of attacks on Geom Powell, we were often told that Powell had only one vote and so it would not be so bad for USD. The fight over Lisa Cook makes it clear that it is not likely to end. Barr and Powell).”
“Separating the fact that Pavel was appointed by Trump and confirmed in the office only by Biden, there is a possibility of expanding for other candidates from the attacks on Cook and Powell, who oppose the interest rate cuts. Not to mention that the Trump administration is demanding to achieve more impact on the appointment of regional Fed heads, which are only in line with Anga,”
