Trump tries to ward off Lisa Cook from the Fed and generates institutional crisis in the US

The attempt by the US President Donald Trump to remove the director Lisa Cook do Federal Reserve (Fed) He raised tension in the financial markets and opened an unprecedented dispute over the independence of the American monetary authority.

The episode and its immediate consequences

Trump accused cook from involvement in mortgage fraud And he said he already had names in mind to replace her, which would give him a majority in the monetary policy committee. If consummated, the measure would be an unprecedented milestone in the history of the Fed.

The repercussion was immediate:

O DXY indexwhich measures the strength of the dollar, fell 0,22%closing at 98.21 points.

Os 30 -year -old treasuries rose from 4.890% to 4,924%reflecting higher risk award in the long run.

Short and middle salaries have retreated, signaling that investors still project Interest cuts soon.

Projections of CME Group They point to 87.3% cutting chance of 0.25 percentage point At the next Fed meeting, but political instability now enters the investors account.

Lisa Cook’s answer and the judicial battle

Lisa Cook rejected the possibility of resignation:

“President Trump claimed to fire me for just cause, when no cause exists, according to the law. And he has no authority to do that,” he said.

Your lawyer, Abbe David Lowellstressed that the accusations have no legal basis and will appeal to the courts.

Trump, in turn, said he was willing to support the measure judicially:

“We are prepared for a cool battle.”

Who can replace it

According to Wall Street JournalTrump already considers names such as:

David Malpassformer president of the World Bank and critic of the current driving of the Fed;

Stephen Miranwhich has already held a temporary vacancy in the American Treasury.

O Federal Reserve announced a statement by highlighting that cook remain legally not charge And it would only stop participating in voting if there is a court decision until September.

Economists’ reactions and risks to the Fed

Political interference is seen as dangerous.

Michael Feroli (JP Morgan) He warned that if Trump succeeds, he could reshape the entire Fed, increasing inflationary risks.

The Obsels Paul Krugman classified the episode as a threat to the rule of law:

“If cook is fired, the implications will be deep and disastrous. It’s not just monetary policy, but whether we are still a nation of laws.”

What is at stake

The dispute is not limited to the immediate future of American monetary policy. It involves three crucial points:

Fed Independence – Central pillar of the credibility of the US economy.

Investor Confidence – already affected by the oscillation in the Treasuries and the Dollar.

Institutional precedent – If Trump is able to ward off Cook, pave the way for greater direct political influence on the Central Bank.