President Trump fired Fed Governor Cook; she said she would not resign and expects to file a lawsuit to challenge the president's action. A Fed spokesperson noted the expected lawsuit would seek a judicial decision to confirm her ability to continue fulfilling her responsibilities and said the Fed will abide by any court decision. The Fed defended the Board's structure and the high bar for removing governors, saying long tenures and removal protections safeguard monetary policy decisions based on data, economic analysis, and long-term public interest. Trump said he expects a Fed board majority soon and linked that to lower rates and housing gains.
In a statement, a Fed spokesperson pointed to Cook's expected lawsuit to challenge the president's action and "seek a judicial decision that "would confirm her ability to continue to fulfill her responsibilities" as a Fed governor. "As always, the Federal Reserve will abide by any court decision," the spokesperson said.
"Long tenures and removal protections for governors serve as a vital safeguard, ensuring that monetary policy decisions are based on data, economic analysis, and the long-term interests of the American people," the spokesperson said.
"Once we have a majority, housing is going to swing, and it's going to be great," Trump said. "People are paying too high an interest rate. That's the only problem with us. We have to get the rates down a little bit," he added.
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