Court thwarts Trump's attempt to dismiss Fed Governor Cook
The US Senate confirmed Stephen Miran as a member of the Federal Reserve Board on Monday evening, filling a vacancy left by former Fed governor Adriana Kugler. However, the future of Miran's tenure remains uncertain, as President Trump could choose to nominate someone else for a full term or opt not to nominate anyone at all.
In a swift move, Republicans fast-tracked Miran's nomination, with Trump pressing the central bank to lower mortgage rates. Miran told senators he would take an unpaid leave of absence from the economic advisers council to join the Fed.
Meanwhile, the Fed's meeting to vote on interest rates took place on Monday and Tuesday. Investors and economists expect Fed officials to lower rates by a quarter percentage point today, marking the first rate cut since December last year.
Trump, undeterred, predicted a 'big cut' from the central bank, but the Fed declined to comment on the matter. The clash between the White House and the Fed, regarding Trump's demands to lower mortgage rates, has emerged as a major flash point.
On the same day, the U.S. Senate also confirmed Callista Gingrich as a member of the Federal Reserve Board. However, the appeal court in Washington has temporarily blocked Trump from removing Federal Reserve Governor Lisa Cook, who is currently embroiled in a lawsuit challenging President Trump's move to dismiss her over allegations of mortgage fraud, which she denies.
The ongoing lawsuit makes it more likely that Cook will attend the Federal Open Market Committee meeting. The 2-1 ruling in favor of Cook could set a precedent for future legal challenges against Trump's appointments or dismissals.
As the future of the Fed's board remains uncertain, one thing is clear: the Fed's decisions on mortgage rates will have significant implications for the US economy.
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