President Donald Trump announced the firing of Federal Reserve Governor Lisa Cook, citing allegations of mortgage fraud. The announcement, posted on his Truth Social platform after U.S. markets closed, prompted declines in European and Asian shares and modestly lower U.S. futures. Markets reacted due to concerns that the move undermines the Fed's long-standing institutional independence and could trigger extensive legal challenges likely to reach the Supreme Court. Major indices in Europe and Asia fell, including Germany's DAX, France's CAC 40, Britain's FTSE 100, Japan's Nikkei 225, Hong Kong's Hang Seng and China's Shanghai Composite. Wall Street benchmarks also slipped on Monday.
"It's an unprecedented move that marks a sharp escalation in Trump's battle to exert greater control over what has long been considered an institution independent from day-to-day politics. Apart from rattling financial markets, it is likely to touch off an extensive legal battle that will probably go to the Supreme Court." "Trump's decision to remove a sitting Fed governor has shaken confidence in the institution that underpins the world's financial system," Nigel Green of the financial advisory deVere Group, said in a commentary.
In early European trading, Germany's DAX lost 0.5% to 24,148.16, while the CAC 40 in Paris slumped 1.6% to 7,716.55. Britain's FTSE 100 gave up 0.6% to 9,269.40. The futures for the S&P 500 and the Dow Jones Industrial Average were 0.1% lower. In Asian trading, most benchmarks declined. Japan's benchmark Nikkei 225 dove nearly 1.0% to finish at 42,394.40. Hong Kong's Hang Seng shed 1.2% to 25,524.92.
Collection
[
|
...
]