Donald Trump demands the resignation of Fed Governor Lisa Cook, threatening Fed Chair Jerome Powell. This creates risks for central bank independence and leads to volatility in financial markets.
Demand for Lisa Cook's Resignation
Donald Trump has called for the resignation of Lisa Cook, a Fed governor, threatening to fire Jerome Powell if she does not step down. This comes amid widespread criticism of the Fed for high interest rates.
Political Interference and Its Consequences
The conflict between Trump and the Fed raises concerns about the independence of the central bank. According to Adriana Kugler, a former Fed board member, independence and policy focus are crucial for the effective functioning of the Fed.
Cryptocurrency Market in Uncertainty
The cryptocurrency markets are reacting cautiously to Trump's threats. Bitcoin is currently priced at $115,369.07, with a market cap of $2.30 trillion. Political pressure on the Fed may cause volatility in both traditional and crypto markets.
The situation with Trump and the Fed highlights the importance of central bank independence, as political interference could impact both traditional financial markets and cryptocurrencies.
