Who is Lisa Cook and what is he accused of the Federal Reserve?

President Donald Trump has demanded the removal of one of the US Central Bank managers, a move that escalates his long -standing feud with the institution.

Late on Monday, he posted in his social account for the truth a letter addressed to Lisa Cook, saying that it was removed by the Federal Council of Governors for allegations of mortgage fraud.

This move has caused a protest from Democrats who say it is unprecedented political intervention.

D -Ja Cook was appointed manager of the Federal Reserve in 2022 by Democratic President Joe Biden, becoming the first African American to play the role. Its term had to end in 2038

Previously, she served in the Council of Barack Obama’s economic advisers and worked at the US Department of Finance.

There are seven governors on the Fed board and they play a key role in determining the US monetary policy.

They make up the bigger part of the committee, which decides the level of interest rates in the United States and aims to maintain prices stable and unemployed as possible.

D -Ja Cook has voted in recent months to maintain interest rates this year.

In his social publication, the president said that Da Cook may have falsified records to get a mortgage.

He said she had signed two documents, two weeks, testifying that two homes in different states were both her main residence.

“It is unthinkable that you were not aware of your first commitment when you were doing the second one. It is impossible to intend to honor both,” he writes.

Cnn has received and reviewed The mortgage documents in question also found that she had requested two major residences, but it was unclear if she had informed any creditor about the fact.

D -Ja Cook is not accused of any misconduct and in a statement she said she would fight her dismissal, since Trump had no reason to fire her.

As a US Central Bank, the Federal Reserve is responsible for managing the nation’s monetary policy, promoting stability in the financial system, regulating institutions and other tasks.

One of the most visible activities it takes is to determine interest. This has a great impact on the financial conditions of the nation, affecting how much money people can occupy.

The Fed functions as a federal agency and is considered independent within the government – his decisions do not require the president’s approval, even though he is responsible to Congress.

This issue can be the subject of intense legal battle.

The Federal Reserve Act does not give the President a license to remove a Fed employee at will, but as Trump noted in his letter to G -Ja Cook, this allows him to do it for a cause.

Trump cites a “criminal guidance” against Cook – after his ally, the residential funding regulator, recently called on Da Cook to be investigated for mortgage fraud. But it is unclear whether an investigation has been opened and Da Cook is not charged with a crime.

In addition to the denial of Da Cook that there is some reason to fire it, legal experts have shown skepticism.

Shan Wu, a former federal prosecutor, told CNN: “At the moment, I think it is somewhat doubtful about a cause, but obviously it is (Trump) relies and I would expect it to challenge it.”

The market reaction to this move of Trump has been relatively tamed so far – as investors also look skeptical and are waiting to see if the dismissal is actually coming true.

Trump has spent much of his second presidency, putting pressure on the Fed, asking Powell to reduce interest rates to reduce the cost of borrowing for US business and consumers. The target range is currently from 4.25 to 4.5%.

Central banks usually reduce the percentage of growth increases. But there is a balancing law as higher interest rates help to maintain inflation under control. Dealing with inflation is another Trump priority.

Lower percentages can also help US exporters and the relief of trade deficit is a central board of Trump’s economic policy.

So far, Powell firmly has declined to reduce the rates since Trump took office, but hinted at a decrease in September.