Treasury Secretary Besant went all out in front of the camera on Wednesday, directly calling out Federal Reserve Chairman Powell, dropping a harsh remark: "We must first conduct an internal review!" Moreover, this review is directly aimed at the "mortgage fraud allegations" against Federal Reserve Governor Cook!
This matter is definitely not a small issue. First, let me provide some crucial background for those who don’t understand: Cook just took office as a Federal Reserve governor in 2022, holding significant financial regulatory power, equivalent to a "guardian of the rules" in the financial circle. But now? She is being exposed for alleged mortgage fraud, which is akin to a referee personally playing in a fixed game. The situation of "the regulator crossing the red line" is almost stripping the financial circle of its underpants!
What's more remarkable is Besant's attitude during the interview on Fox Business Channel, with dissatisfaction almost overflowing from his tone: "This matter must be resolved!" He specifically pointed out Cook's "toughness"—"We didn’t hear her say 'I didn’t do it,' we only heard her repeatedly say 'the president can’t dismiss me!'" Listen to this dialogue, doesn’t it resemble a famous scene from a drama where people tear their faces apart?
The most ruthless part is Besant's following remark, which directly hit the nail on the head: "If Federal Reserve officials really committed mortgage fraud, why should they stay in the most important financial regulatory agency in the US?" This statement is absolutely correct! The Federal Reserve's authority in the global financial sphere relies on the trust of the American people. Now that such an incident has occurred, the cornerstone of trust is almost eroded, and this is no trivial matter!
Don't think this matter has nothing to do with us. Every move of the Federal Reserve can affect everything. It influences the trend of the dollar and sways global inflation. Even our overseas assets and those projects linked to the dollar could be impacted by this turmoil. Now that the Treasury Secretary and the Federal Reserve have directly "torn their faces apart," the subsequent plot is simply unpredictable: Will Powell respond? Will this internal review truly go to the bottom? Will Cook really step down?
This pace is more thrilling than following American dramas. What do you think will be the outcome of this matter? Will it have any impact on our assets? Come to the comments section to discuss and let's wait for the follow-up together!