Trump Removes Cook, Dollar Weakens
The US dollar weakened after former President Donald Trump announced the removal of Federal Reserve Governor Lisa Cook. This decision sparked market concerns about the central bank's independence. The dollar index fell 0.2%, while the Japanese yen strengthened. Asian stock markets also opened lower, and gold prices edged up 0.4%.
Trump made the announcement via his Truth Social account, stating that the removal was effective immediately. This move came after the US Department of Justice announced it would investigate Cook for alleged mortgage fraud, based on a criminal referral from Federal Housing Finance Agency Director Bill Pulte.
Cook's removal raised concerns that the Trump administration was increasing political pressure on the Fed. Some analysts believe this action could pave the way for Trump to install more board members aligned with him, thereby increasing political influence within the central bank.
According to Rodrigo Catril of National Australia Bank, if Trump succeeds in installing his appointees, the Fed's independence could be threatened. He added that the future of US monetary policy will depend largely on whether the new board members will respect the Fed's dual mandate: maintaining price stability and supporting employment. (ayu)
Source: Newsmaker.id