🚨🚨🚨 BREAKING 🚨🚨🚨

Trump unleashed the most explosive crisis in the history of the Federal Reserve. The DRAMA of the moment continues to leave MUCH uncertainty about what may happen

Why could this event change the markets FOREVER?

What happened and why is it so serious?

Trump signed an EXECUTIVE ORDER removing Lisa Cook from the Fed board

He used Article II of the Constitution + Section 242 of the Federal Reserve Act, which allows the removal of governors “for just cause”

The “cause”: a “Criminal Referral” for allegedly lying on 2 mortgages, declaring two different properties as his “primary residence” in 2021

This would be, according to Trump, a case of “mortgage fraud”

Never before has a president attempted this

In 111 years of Fed history, never has a president removed a governor

The term of Fed Governor lasts 14 years precisely to avoid political pressure

Cook was appointed by Biden and her term would not end until 2038

Why does Trump want to remove her?

Currently, there are 7 governors at the Fed, including Jerome Powell

Trump has already appointed 3 of them

If he manages to replace Cook, he would have 4 out of 7 seats under his influence

He would have a majority on the Fed board

What does this mean for the markets?

Trump has already called for a CUT of 300 basis points (3%)

It would be triple the largest previous cut (March 2020: -100bps)

The new governor appointed by him, after Kugler's resignation, Miran, has already shown willingness to cut

With a majority, the Fed could cut aggressively

And how did Lisa Cook respond?

She refused to resign and claims that Trump has no legal authority to fire her

Her lawyer stated that they will take “all necessary actions” to prevent what they consider an “illegal act”

This could go to the Supreme Court, leaving uncertainty and is a TOTAL SCANDAL

Meanwhile, the markets are already reacting:

In Kalshi, the predictions of whether Cook will be removed this year rose from 12% to 60% and then fell to 36%