Is Trump starting to dismantle the Federal Reserve?!
A big scoop just broke: Trump directly called out Federal Reserve Board member Cook, demanding her immediate resignation, claiming that when she applied for two mortgages in 2021, she wrote them all as 'primary residence', which suggests fraud.
Who leaked this?
It was Trump's own person, the Director of the Federal Housing Finance Agency, Pulte. This person had already called for an investigation into Powell in July, and now precisely targeted Cook, which is definitely not a coincidence.
Cook is very tough, responding that she is 'undoubtedly being forced to resign', but Trump has already stated: if she doesn’t resign voluntarily, he will consider firing her!
But the problem is, legally, the president cannot simply fire a Federal Reserve Board member unless 'serious misconduct' can be proven. Moreover, if the so-called 'issue' occurred before her appointment, is this reasoning valid?
Many legal experts find it tenuous.
The market exploded instantly:
The dollar plummeted, gold surged by $30, and the U.S. stock market's decline quickly recovered—this trend is essentially trading on 'rate cut expectations'.
Why?
The logic is simple:
Once the independence of the central bank is broken, it is equivalent to shaking the foundational credit of the dollar.
The dollar would need to add an extra layer of 'risk premium'.
What’s even more frightening to think about is whether other Federal Reserve officials will still dare to be hawkish?
If they can be politically targeted for just saying something tough, who would dare to speak freely?
The result is: regardless of whether economic data supports it, the market will automatically expect a 'dovish shift', and monetary policy is invisibly hijacked.
This is not just a one-time event.
Last week Trump insulted Goldman Sachs CEO saying 'you should go back to being a DJ', which has already made Wall Street afraid to publicly take a bearish stance.
Today, he's also precisely targeting the Federal Reserve Board member just two days before Powell's Jackson Hole speech.
Think about it, really think about it.
This is not political maneuvering; what is?
What aspect of this topic do you want to understand the most? Let me know in the comments, and I will customize the next issue for you! I will take you to explore tenfold potential coins!
