According to the reports, the new evidence underly the campaign of President Trump to say goodbye to Governor Lisa Cook. With the FOMC meeting a few days away, Trump will probably not be able to change his composition on time.
The market already predicts with confidence that Fed will reduce US interest rates in the next few days. Even so, the continuous presence of Cook will maintain fed independence and avoid Trump’s radical restructuring.
Documents support Governor Fed
In recent months, President Trump has considered a drastic action to impose a cut on the interest rates of the United States, even with the aim of saying goodbye to Fed President Jerome Powell. Although Powell himself is finally open to rates cuts, Trump is still influencing the Fed procedures, trying to say goodbye to Governor Lisa Cook in August.
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Like Powell himself, it is theoretically illegal for the president to shoot the governors of the Fed. If Trump succeeds, he can obtain control over FOMC.
This violation of fed independence could have immense consequences, and is making industry observers extremely nervous:
However, according to a new report from ReutersThe new evidence could help this governor of the Fed maintain his position. Trump administration complaints focused on accusations that mortgage fraud committed.
Apparently, however, he declared that supposedly fraudulent property was a holiday house, clearly showing that he did not intend to be his main residence. This would demonstrate that there was no mortgage fraud.
Reuters He did not publish any of the relevant documents, but this evidence would undermine Trump’s pretext to fire her.
Could this impact rate cuts?
So why would cryptography markets care about this problem? President Trump has been trying to completely expel Mrs. Cook before the next FOMC meeting. If he could replace it with a new governor of the Fed in functions, that could have immediate repercussions for the cuts of US rates and other policies.
Even so, the Fed was almost sure to reduce interest rates. It is not that this evidence is necessarily optimistic for cryptography; More exactly, avoid a bearish scenario.
However, this is still quite significant. FOMC meetings influence Token prices and whale activity, and drastic actions could change the entire market.
From where it is seen at this time, the Fed should not expect any important curved balls before the meeting takes place. Markets can probably anticipate a continuous status quo, at least of this regulator.
