U.S. President Donald Trump immediately removed from her post from the authority authorized by Article 2 of the U.S. Constitution and the Federal Reserve Act of 1913.
“The American people must be able to fully trust in entrusting policies and overseeing the honesty of the Federal Reserve,” Trump wrote in an August 25 letter. The lawsuit comes after a criminal referral on August 15 that raised concerns about false statements in mortgage documents.
Why did Trump withdraw Lisa D Cook as Fed governor?
According to the referral, Cook allegedly signed a deal for major residences in Michigan and Georgia, and within weeks of each other, the Trump administration was described as a bill as “deceptive and potential crime.”
Add Zee business as your preferred source
It noted that the U.S. central bank plays a crucial role in setting interest rates and regulating banks, and the so-called behavior reflects “serious negligence in financial transactions” and undermines the credibility of the institution.
Also read: Donald Trump
Who is Chef Lisa D?
Cook joined the Fed’s board of directors in 2022 under the leadership of then-President Joe Biden.
In September 2023, she was re-appointed as of January 2038.
Cook was the first African-American woman to serve on the Federal Reserve Committee.
What is the role of the governor in the Federal Reserve?
The Fed governor’s position is different from that of the central bank’s chairman. In the United States, the governor of the central bank is part of the board of directors – the institutions that oversee the central bank.
The federal government is appointed by the president and confirmed by the Senate, and its normal term is 14 years.
Although every governor has an equal vote on most policy matters, the chairman is the head of the board and the public appearance of the Federal Reserve.
The Fed governor enjoys the authority, but the chairman of the central bank leads the institution.
Also Read: For the Seventh Time, Trump claims to have stopped the nuclear war between India and Pakistan
