U.S. President Donald Trump has dismissed Lisa Cook from her duties at the Federal Reserve, prompting negative reactions in economic circles.
Dismissal of Lisa Cook
On August 27, Brian Hassett, Director of the White House National Economic Council, announced that Lisa Cook should take a leave amid ongoing litigation regarding her position at the Fed. Cook contests the decision, arguing there are no legal grounds for her removal.
Market Reactions and Analyst Concerns
Market reactions have been mixed. J.P. Morgan has expressed concerns about the Fed's independence. Key industry voices underscore the significance of the Fed's autonomy, actively discussing the matter on social media platforms.
Historical Context of the U.S. Economy
The dismissal of Cook echoes past instances when such actions against Fed officials, like Jay Powell in 2019, led to market instability. This is particularly relevant for stablecoins like USDT and USDC, which are sensitive to shifts in U.S. monetary policy.
Lisa Cook's dismissal raises critical questions about the independence of the Federal Reserve and its potential impact on financial markets and stablecoins.
