According to Trump, the accusations compromise Cook, the first black woman sitting on the Governors' Council. He referred to the provision in the statute of the Federal Reserve, which allows the dismissal of a member “for an important reason”. Cook, however, was not formally accused of crime, and legal experts emphasize that the charges were not confirmed by the court.
The “New York Times” points out that the Cook cancellation may cause a legal dispute regarding the scope of the president's rights towards the independent institution, which is the Fed. Trump's decision is part of his long -term criticism of the Central Bank, who blamed him to maintain too high loan costs.
The direct impulse for action was the pressure from Bill Pulte, director of the Federal Residential Financing Agency (FHFA), who accused Cook of mortgagereferred the case to the Department of Justice and called her to resign. When Cook refused, Trump fulfilled his threat.
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Trump can now call someone loyal
“I decided that there are sufficient reasons to remove you from the position. The American nation must have full confidence in the integrity of members who entrusted the establishment of politics and supervision of the federal reserve. In the light of the fraudulent lady and potentially criminal proceedings in a financial case, they cannot, nor do I have confidence in your honesty” – wrote the president in the letter on the Truth Social Portal.
“NYT” reminds that the 14-year cadence of Cook was to last until 2038. Its removal creates Trump to fill the position with a loyal candidate. This aroused anxiety among economists, fearing that political pressure can lead to premature reduction of interest rates.
Critics have noticed that Trump and Pulte managed similar accusations against their political opponents, including senator Adam Schiff and the Prosecutor General of New York Letitia James.
In a public statement last week, Cook declared that “she is not going to be intimidated and given away from his position.” She undertook to “answer all justified questions and present the facts.”
After the recent resignation of Adriana Kugler, the departure of Cook leaves two vacancies in the Governors of a seven -seater. Trump has already nominated the Chairman of the Council of Economic Advisors of the White House of Stephen Miran to the place of Kugler. The nominations require the US Senate approval.
