Trump Targets Fed Governor Over Mortgage Allegations
US President Donald Trump has reignited his battle against the Federal Reserve, targeting Fed Governor Lisa Cook over unproven mortgage fraud allegations. This move suggests that the administration is anxious about a potential interest rate hike as soon as next month and realizes its appointee, Chair Kevin Warsh, may be unable to stop it.
The White House's letter demanding Cook's response within three weeks came despite a Supreme Court ruling in June that recognized the Fed's special statutory protections. This has left unresolved whether the allegations constitute grounds for removal.
Futures markets see a 75% chance of a quarter-point rate increase by the midterms, with inflation and energy prices driving this expectation. The outcome at the September 15-16 meeting is seen as a coin toss, making Trump's timing crucial.