Last Friday for September Powell‘s statements already pointed out the interest rate cut. However, in the first hours of Monday, Trump started Lisa Cook with Cook, which he could not engage in with Trump Powell. Things are confused for the FED and interesting events are waiting for us in September.
Fed Member Cook filed a lawsuit
Explaining that Trump could not dismiss him Cook He announced that the legal process would be initiated immediately. Today, the court file appeared. Cook asks the US judge to confirm Trump that he cannot fire him. The temporary request will indicate that Trump has exceeded his authority, at least Lisa’s request is in this direction.
In addition, according to the court file, the FED is asked to prevent the necessary steps to dismiss him. For months, the first episode with Powell, the second episode with Cook started. The scenario is moving as we expected.
In the case of Cook’s Washington, DC, the defendant of the board of directors, including Powell, is an interesting detail.
There is enough reason
In a letter he sent to Cook on Monday, Trump said that I am dismissing because he was sufficient. What was this? In 2021, Cook, who showed two different property as the first residence, claimed that he made mortgage fraud.
Trump did not offer any reason when dismissing previous independent institution executives. The Supreme Court also ruled why the president had no obligation to submit to dismiss. However, the Fed Law requires justified justification.
September and chaos
The movement of the process to court today brings some risks for September. Because the issue of Cook is accused by Biden 1 year before the appointment of the institution corresponds to. The allegation of crime before taking office in 2021 is not about his job.
White House spokesman Kush Desai says Trump used his legal authority when he dismissed Cook, but for the reason above, the case seems to be controversial. But if Trump can make a strong defense, falsification in the financial document is irregular and that is why Fed It can convince the court that there should be no cook in a critical institution such as. And even if the crime was committed before he started.
FED’s independence
The user named E507, which has been closely monitored in Turkey in Türkiye, discussed this issue. TrumpWe have the majority in the “Monetary Policy Committee!” Economist, who handled his statement, said;
“Trump’s usual reckless, separatist and chauvinist approach continues to keep the Fed’s independence in the head corner of the agenda. 4 out of 12 members who will make interest decisions and make their own men and digest the rest and reduce the interest rates quickly. -now-“
Alright Fed Was he always independent? The economist, who said that this perception was due to the fact that the Central Bank of the Central Bank was caused by the last 50 -year -old Central Bank, reminded that there were interventions in the FED before 1951. In other words, the freedom of monetary policy has emerged in the last 50+ years, not something that has been something that has been 111 years.
So what was it before?
“As in many countries during World War II, there was a“ war economy.QEAt that time, the asset purchase programs named was at that time. At one point, more than 80 %of all the internal debt entered the FED balance sheet. After the war, in 1951 with “Treasury monetary policyHe left the finance and gained the freedom of the Fed. In this, it was effective that lowering consumer inflation, which saw 21 %, became the main target. ” -E507
In summary, the more abnormal but unusual conditions are the result of the tariffs. Trump signaled that it is out of normal with the rate of effective customs data exceeding 17 percent, and it would not be surprising that we are going to the 1951 conditions in terms of the independence of the Fed.
Economist E507 while dealing with the results of this process in detail Crypto Coinsstock market and gold It foresees ascension. So how long is this?
“A world economy is at least 3 years more stressful, absurd, complicated, but a fantastic way awaits.” -E507
Trump will want to go to the midterm elections next year with much lower interest rates, so 1 year in the pocket, the budget deficit of customs duties income and interest in the story of the decline in the story of the story should be abundant for the most 2 years. Since E will not want to enter the elections in the elections, the 3 -year period may not be so exaggerated.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
