U.S. President Donald Trump is forging ahead with his plan to remove Fed Governor Lisa Cook, as the Justice Department has filed a petition on his behalf to allow him to remove her. This follows the FOMC meeting yesterday, in which the Fed cut rates for the first time this year, leading to a crypto market rally.
Trump Petitions Supreme Court On Lisa Cook Case
A court filing shows that the Justice Department, on behalf of the U.S. president, has asked the apex court to stay the preliminary injunction issued by the U.S. District Court pending appeal to the U.S. Court of Appeals and any further proceedings in the Supreme Court.
The Solicitor General also requested an immediate administrative stay of the preliminary injunction. The District Court had earlier issued an injunction reinstating Lisa Cook as a Fed Governor after Trump fired her over the mortgage fraud allegations, which the president described as enough cause in line with the Federal Reserve Act.
Meanwhile, the Appeals Court had rejected Trump’s petition to stay this ruling just hours before the FOMC took place on Tuesday. The Fed Governor eventually took part in the Fed meeting and voted in favor of a rate cut as the committee made the first interest rate cut this year, lowering rates by 25 basis points (bps).
Trump Seeking Majority Of The Fed
It is worth mentioning that the U.S. president had remarked that they would soon have the majority of the Fed around the time when he first attempted to fire Lisa Cook. His attempt to remove the Fed Governor has also come amid his criticism of the Fed for its refusal to lower interest rates, although that has now changed.
Despite this, the president has shown that he wants interest rates to come down drastically, which may explain why he is still attempting to remove the Fed Governor to replace her with someone who would align with his vision. Prior to the FOMC, Trump had urged Powell to make a higher cut than he had in mind.
Notably, Fed Governor Stephen Miran, whom Trump nominated to replace Adriana Kugler, was the only dissent at yesterday’s FOMC meeting, voting in favor of a 50 bps cut as against a 25 bps cut. Lisa Cook and the other Fed officials all voted in favor of a 25 bps cut.
The rate cut has provided a spark for the crypto market, with the Bitcoin price breaking above $117,000. Altcoins have also recorded significant gains, with the BNB price surpassing the psychological $1,000 level for the first time.
Source: https://coingape.com/donald-trump-petitions-supreme-court-to-remove-fed-governor-lisa-cook/
