Trump for months FedVarious methods, roads are called to design. The process against Powell failed. Then Kugler resigned less time before his term of office, and Trump proposed Miran instead. Afterwards, FOMC member Lisa Cook was dismissed, but this issue was moved to court.
Fed member Cook’s case
There was an interesting table, Trump Fed Member He announced that he was dismissed Cook, but Lisa’s name was not deleted from the Fed’s website. Hours ago, Trump, who tried to seize the control of the Federal Reserve, gave a news that the Federal Judge would not be satisfied. The court, which temporarily stopped Trump’s decision to dismiss, paved the way for Lisa to raise hands for the decision at the meeting next week.
The Fed is expected to announce the first interest rate reduction decision next week. Lisa Cook will be in the seat even if Trump dismissed him. Although this decision is bad for Trump, it is positive for the debate about the Fed’s independence.
US Regional Judge Jia Cobb thinks that Cook’s attempt to dismiss Trump has hurriedly prevented the allegations. The Trump side will appeal the issue. Recently, the Ministry of Justice started a criminal investigation for Cook and took action to make Cook’s crime fixed.
“The dismissal should not be based on the assumptions of the president’s unproven behaviors before he started to work.” – Judge
As we have already mentioned, the fact that the incident subject to mortgage fraud (claim) took place in 2021 and Cook started to work in 2022 was one of the most important trumps of the FED member in the case process. Nevertheless, this decision is positive in terms of the independence of the Fed.
Well Your crypto coins We’re not talking about a decision against it. Cook is currently on the same line as Fed President Powell and the president wants 25BP discounts. For months, the terrible employment reports and this week’s approximately 1 million downward BLS revision converted the interest rate cut into a necessity, not a choice.
Fed will reduce interest rates
The Senate Committee adopted Miran’s nomination with 13-11 votes, and Trump aims to keep him at the institution after January 31st. The delay in Cook is not important because the data already requires interest rate cuts. The next Fed meeting will be held on October 29 and a discount is expected here with 80 %probability.
If inflation And if employment watches as it is nowadays, that is, if the incredible negative consequences of tariffs are not seen on inflation, interest rates will decrease in this scenario, even if Trump is not at the desired speed.
When we come to May 6, including September 6 FED meeting It will be behind. To date, markets are waiting for a discount of around 125BP. Trump will not be able to get it in the medium term because he wants a minimum discount of 300BP. With the dismissal of Cook faster, the possibility of discount may increase, but to completely seize the control of the institution PowellHe needs to go. He doesn’t seem to resign before his term of office.
In summary, Trump could not get what he wanted, but the negativity of the 55 -year -old Central Bank’s independence story dispersed by the judge’s decision. In the last quarter, we hope to see good days for crypto currencies with slow but downward interest decisions, far from structural debates for crypto currencies in the last quarter.
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 perform their operations in line with their own research.
