US President Donald Trump says he’s prepared for fight as Cook vows to sue — Bloomberg

Source Fxstreet

US President Donald Trump said he was ready for a legal fight with Federal Reserve (Fed) Governor Lisa Cook after he moved to oust her from her post following allegations that she falsified mortgage documents, Bloomberg reported late Tuesday. 

Trump spoke at a Cabinet meeting on Tuesday, saying that he was also prepared to abide by any court decision but indicated he was not concerned about Cook’s challenge.

Market reaction

At the time of press, the US Dollar Index (DXY) was up 0.03% on the day at 98.25.

Fed FAQs

Monetary policy in the US is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability and foster full employment. Its primary tool to achieve these goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed’s 2% target, it raises interest rates, increasing borrowing costs throughout the economy. This results in a stronger US Dollar (USD) as it makes the US a more attractive place for international investors to park their money. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates to encourage borrowing, which weighs on the Greenback.

The Federal Reserve (Fed) holds eight policy meetings a year, where the Federal Open Market Committee (FOMC) assesses economic conditions and makes monetary policy decisions. The FOMC is attended by twelve Fed officials – the seven members of the Board of Governors, the president of the Federal Reserve Bank of New York, and four of the remaining eleven regional Reserve Bank presidents, who serve one-year terms on a rotating basis.

In extreme situations, the Federal Reserve may resort to a policy named Quantitative Easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is a non-standard policy measure used during crises or when inflation is extremely low. It was the Fed’s weapon of choice during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy high grade bonds from financial institutions. QE usually weakens the US Dollar.

Quantitative tightening (QT) is the reverse process of QE, whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing, to purchase new bonds. It is usually positive for the value of the US Dollar.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Bitcoin Price Slips Below $110K, Is a Bigger Drop Coming?BTC is struggling to recover and might continue to move down toward the $105,500 level.
Author  FXStreet
Yesterday 03: 12
BTC is struggling to recover and might continue to move down toward the $105,500 level.
placeholder
US Dollar Index corrects to near 98.30 as Trump fires Fed’s CookThe US Dollar Index (DXY) corrects to 98.30 during the Asian trading session on Tuesday, following a decent recovery move the previous day.
Author  FXStreet
Yesterday 03: 45
The US Dollar Index (DXY) corrects to 98.30 during the Asian trading session on Tuesday, following a decent recovery move the previous day.
placeholder
Forex Today: Markets turn risk-averse as Trump renews tariff threatsThe US Dollar (USD) stabilizes after fluctuating wildly in the late American session on Monday and early Tuesday.
Author  FXStreet
19 hours ago
The US Dollar (USD) stabilizes after fluctuating wildly in the late American session on Monday and early Tuesday.
placeholder
Whales move from Bitcoin to Ethereum with $2.5B stakedWhales are rotating from old BTC holdings into ETH, signaling ongoing expectations of a market recovery and more relevance for Ethereum.
Author  Cryptopolitan
18 hours ago
Whales are rotating from old BTC holdings into ETH, signaling ongoing expectations of a market recovery and more relevance for Ethereum.
placeholder
Bitcoin Price Forecast: BTC slips below $110,000, wiping out over-leverage traders Bitcoin (BTC) hovers around $110,100 at the time of writing on Tuesday after closing below a key support level the previous day, triggering massive liquidations across the market.
Author  FXStreet
18 hours ago
Bitcoin (BTC) hovers around $110,100 at the time of writing on Tuesday after closing below a key support level the previous day, triggering massive liquidations across the market.
Related Instrument
goTop
quote