US President Donald Trump announced the dismissal of the Federal Reserve Governor Lisa Cook, which raised questions about the reliability of the US dollar.
On a Tuesday PostWhite House Rapid Response X profile published a letter signed by Trump Removing the cook from his paper in the federal reserve. He accused him of making false statements in one or more mortgage agreements and, directly adding to him, write:
“I have determined that honest law enforcement requires your immediate departure from the office.”
According to a Tuesday Associated Press ReportCook said he would not go down. He said Trump was trying to remove him from his post “for the reason,” but claimed that “no reason exists under the law,” added that Trump has “no authority” to remove him. He decided to “he would not resign.”
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Fed freedom is critical
The Federal Reserve has a significant degree of independence from the US government. The founder of Obchakevich Research, Alex Obchakevich, told Cointelegraph that Fed’s freedom “is the foundation for the stability of the US economy.” He explained:
“It ensures the goal financial policy, such as rates, inflation without politics, maintaining the investor’s confidence and avoiding crises. Without it, there is a risk of manipulation and economically, as in the countries authorities.”
Obchakevich suggested that Trump decides to burn the cook for “political reasons” and that his decision has dropped Fed’s freedom. This leads to market uncertainty and deteriorates economic emotions, he said, and added:
“It causes volatility, a weakening of the dollar and a threat to its paper reserve at the risk of retreating.”
When asked if Bitcoin (Btc) Can be a potential solution, Obchakevich said that in the long run, “Bitcoin can soften the role of the dollar as a currency reserve.” However, he said Bitcoin does not appear to be a close solution.
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Trump’s fighting in the Federal Reserve
The news followed the repeated quarrel between Trump and the leadership of the Federal Reserve. In mid -April, Trump read Federal Reserve Chair Jerome Powell For allegedly cutting interest rates too slowly amid a trade war in the US.
Then he went until he was suggested to shoot him. “Powell’s termination can’t come quickly!” Trump said.
Market participants quickly reject the idea. The famous crypto businessman Anthony Pompliano said that Trump should not follow his threat to Fire Powell.
“I do not believe that the president of the United States should enter and unilaterally fire the fed” chair, he said. He suggested that the action set a bad decision.
US Senator Elizabeth Warren also warned that if Trump fired Powell, it could break the investor’s confidence in the integrity of US capital markets and to treat a financial crash.
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