Trump Challenges Fed Rate Cut: Seeks Removal of Lisa Cook
Trump Continues Push Against Fed Governor Lisa Cook
Former U.S. President Donald Trump is continuing his efforts to remove Federal Reserve Governor Lisa Cook. The Justice Department has filed a petition on his behalf, seeking to overturn a previous injunction that reinstated Cook after Trump initially attempted to dismiss her.
This move follows the Federal Open Market Committee (FOMC) meeting where the Fed implemented its first interest rate cut of the year, a decision that triggered a rally in the cryptocurrency market. The timing underscores Trump's ongoing criticism of the Fed's monetary policy.
Supreme Court Petition Filed
A court filing reveals that the Justice Department, acting on behalf of Trump, has requested the Supreme Court to stay the preliminary injunction issued by the U.S. District Court. This injunction had prevented Cook's removal.
The Solicitor General also requested an immediate administrative stay of the preliminary injunction. The District Court's initial injunction reinstated Cook after Trump fired her over mortgage fraud allegations, which he argued constituted sufficient cause under the Federal Reserve Act.
An Appeals Court previously rejected Trump's request to stay the ruling just before the FOMC meeting. Cook subsequently participated in the meeting and voted in favor of the 25 basis point (bps) rate cut.
Implications for Fed Policy and Crypto Markets
Trump had previously stated his intention to gain a majority influence over the Fed. His attempts to remove Cook align with his broader criticism of the central bank's interest rate policies, despite the recent rate cut.
Prior to the FOMC meeting, Trump publicly urged Fed Chair Jerome Powell to implement a more substantial rate cut. During the meeting, Fed Governor Stephen Miran, a Trump nominee, dissented, advocating for a 50 bps cut instead of the approved 25 bps.
The recent rate cut has positively impacted the crypto market. Bitcoin's price surged above $117,000, and altcoins experienced significant gains, with BNB surpassing $1,000 for the first time. The Fed's monetary policy decisions have a demonstrable impact on crypto asset values.
For blockchain developers and security experts tracking these market movements, platforms like Codeum offer essential tools for monitoring smart contract performance and ensuring the security of decentralized applications in response to market volatility.