Market Responses to Presidential Influence on the Federal Reserve

President Donald Trump is ramping up his attacks on the Federal Reserve.

On Monday, the president posted orders on Truth Social to remove Federal Reserve governor Lisa Cook – effective immediately. The president claims she committed mortgage fraud, an allegation first raised by a Trump loyalist and housing official.

Cook, who was appointed by former President Joe Biden, responded in a statement saying that Trump has no authority to remove her and that she will continue her duties. Cook has not been charged with a crime.

It’s an unprecedented move that puts into question the independence of the central bank. So, what comes next and what does this mean for the Fed?

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