Nonilex
@Nonilex@masto.ai  ·  activity timestamp last week
#Trump said Monday night that he’s firing #FederalReserve Governor #LisaCook, an unprecedented move that would constitute a sharp escalation in his battle to exert greater control over what has long been considered an institution #independent from day-to-day #politics.

Trump said in a letter posted on his Truth Social platform that he is removing Cook effective immediately because of allegations that she committed mortgage fraud.

#law
https://apnews.com/live/donald-trump-news-updates-8-26-2025
Nonilex
@Nonilex@masto.ai replied  ·  activity timestamp last week

The #FederalReserve wields extensive power over the US #economy. By cutting the short-term interest rate it controls — which it typically does when the economy falters — the Fed can make borrowing cheaper & encourage more spending, accelerating growth & hiring. When it raises the rate — which it does to cool the economy & combat #inflation — it can weaken the economy & cause job losses.
Nonilex
@Nonilex@masto.ai replied  ·  activity timestamp last week

Economists have long preferred #independent central banks because they can more easily take unpopular steps to fight inflation, such as raise #InterestRates, which makes borrowing to buy a home, car, or appliance more expensive.

The importance of an #independent#FederalReserve was cemented for most economists after the extended inflation spike of the 1970s & early 1980s.