Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
The question is will Trump actually succeed in removing Cook from the Fed Board? To put it in some perspective, here are two a short articles from today's The NY Times:
"In May, President Trump got the Republican-appointed majority on the Supreme Court to let him arbitrarily remove Democratic-appointed members of other independent agencies — the National Labor Relations Board and the Merit Systems Protection Board — before their terms are up.
In that decision, the court majority pointedly said the Federal Reserve was different, noting that lawyers for the fired board members “contend that arguments in this case necessarily implicate the constitutionality of for-cause removal protections for members of the Federal Reserve’s Board of Governors.” The court stated flatly, “We disagree,” adding that the Fed was “a uniquely structured, quasi-private entity.”
By firing Lisa Cook, but purporting to do so for cause, Trump is pushing further, and likely setting up a test of whether this Supreme Court will say a president can’t be second-guessed if he says he sees a cause.
What recourse does Ms. Cook have?
She could sue to keep her job, and a judge would then determine whether there is enough evidence to meet the “for cause” requirement. The judge would also decide what would happen in the near term, while the issue was being litigated.
Were a judge to let Ms. Cook stay in her post while the case proceeds, the administration would almost certainly ask the Supreme Court to intervene."
Future market for tomorrow: gold is up and the Dollar is down, and it is relating to the firing of Governor Lisa Cook and the attack of the FED’s independent.
Gosh that sounds familiar. Wasn't it Cook who lost a fraud case for falsifying property records including claiming a 33,000 square foot apartment in order to gain more favorable loan terms and lower interest rates? Maybe not.
We keep watching our Democracy die a little more each day while we listen to the denials from MAGAland. Fed independence is just the next domino. Whether or not he succeeds in ousting Cook will be a circus show all it's own.
Occupying blue cities with armies is a much larger domino, as is stealing future elections.
Gold and crypto up (hmmm, who holds crypto?), dollar down, Democracy down. If somebody doesn't stand up to this maniac, it stays down.
Gosh that sounds familiar. Wasn't it Cook who lost a fraud case for falsifying property records including claiming a 33,000 square foot apartment in order to gain more favorable loan terms and lower interest rates? Maybe not.
Gosh that sounds familiar. Wasn't it Cook who lost a fraud case for falsifying property records including claiming a 33,000 square foot apartment in order to gain more favorable loan terms and lower interest rates? Maybe not.
But, but the bank loan was fully paid off and the bank didn’t complain (because they would have lost banking charter?), so free pass.
In Cooks case, the bank must have gone bankrupt, so we gotta press charges on the social, the official legal scholarly journal of the Govt.
"Cook responded several hours later in a statement emailed to reporters through the law office of Abbe Lowell, saying of Trump that 'no causes exist under the law, and he has no authority' to remove her from the job she was appointed to by former U.S. President Joe Biden in 2022. 'I will continue to carry out my duties to help the American economy.' Lowell said that Trump's 'demands lack any proper process, basis or legal authority. We will take whatever actions are needed to prevent this attempted illegal action.'"
No other president has attempted to fire a Fed governor. This will be a very interesting legal battle!
"The market response to President Trump’s Monday attempt to fire a Federal Reserve governor was relatively subdued. Don’t let that fool you. If Trump’s effort to remove Lisa Cook for cause succeeds, and perhaps even if it doesn’t, this week will go down as one of the most consequential for financial markets in decades."
"The market response to President Trump’s Monday attempt to fire a Federal Reserve governor was relatively subdued. Don’t let that fool you. If Trump’s effort to remove Lisa Cook for cause succeeds, and perhaps even if it doesn’t, this week will go down as one of the most consequential for financial markets in decades."
Public part is the Federal Reserve Board (FRB) with 7 Governors that include 1 Chair & 2VCs. All are nominated by the President & confirmed by the Senate.
Private part is 12 Federal Reserve Banks with government charters of supervising banks in their regions, participation in FOMC meetings (only 5 of 12 can vote, but all participate in discussions). NY Fed has a permanent vote & also the position of FOMC VC (not the same as Fed VCs), so 4 remaining votes rotate among the rest 11 Fed Banks. These Fed Banks have their own Boards that decide on their Fed Bank Presidents. Nominally, they are also approved/endorsed by the Federal Reserve Board (FRB).
The linked WSJ article via MSN notes that this proforma approval of Fed Bank Presidents by FRB may be used to exert more control on the makeup of 12 Fed Banks. That may disrupt the private part quickly.
Comments
"In May, President Trump got the Republican-appointed majority on the Supreme Court to let him arbitrarily remove Democratic-appointed members of other independent agencies — the National Labor Relations Board and the Merit Systems Protection Board — before their terms are up.
In that decision, the court majority pointedly said the Federal Reserve was different, noting that lawyers for the fired board members “contend that arguments in this case necessarily implicate the constitutionality of for-cause removal protections for members of the Federal Reserve’s Board of Governors.” The court stated flatly, “We disagree,” adding that the Fed was “a uniquely structured, quasi-private entity.”
By firing Lisa Cook, but purporting to do so for cause, Trump is pushing further, and likely setting up a test of whether this Supreme Court will say a president can’t be second-guessed if he says he sees a cause.
What recourse does Ms. Cook have?
She could sue to keep her job, and a judge would then determine whether there is enough evidence to meet the “for cause” requirement. The judge would also decide what would happen in the near term, while the issue was being litigated.
Were a judge to let Ms. Cook stay in her post while the case proceeds, the administration would almost certainly ask the Supreme Court to intervene."
Future market for tomorrow: gold is up and the Dollar is down, and it is relating to the firing of Governor Lisa Cook and the attack of the FED’s independent.
https://www.nytimes.com/2025/08/22/us/politics/trump-lisa-cook-fed-mortgage-fraud.html
Gosh that sounds familiar. Wasn't it Cook who lost a fraud case for falsifying property records including claiming a 33,000 square foot apartment in order to gain more favorable loan terms and lower interest rates? Maybe not.
Occupying blue cities with armies is a much larger domino, as is stealing future elections.
Gold and crypto up (hmmm, who holds crypto?), dollar down, Democracy down. If somebody doesn't stand up to this maniac, it stays down.
Paxton is a genuine leader.
https://www.google.com/search?q=republican+mortgage+fraud+examples+&sca_esv=6d88a22af351a497&rlz=1C1ONGR_enUS1124US1124&sxsrf=AE3TifP9uLZ0rL1LYs_oRi6U3dl2UomnUQ:1756178316901&ei=jCetaK3hNuPW5NoPq8yo8Qk&ved=0ahUKEwit1_aFwqePAxVjK1kFHSsmKp4Q4dUDCBA&uact=5&oq=republican+mortgage+fraud+examples+&gs_lp=Egxnd3Mtd2l6LXNlcnAiI3JlcHVibGljYW4gbW9ydGdhZ2UgZnJhdWQgZXhhbXBsZXMgMgUQIRigATIFECEYoAEyBRAhGKABMgUQIRigATIFECEYoAFIzRJQxgdYnRFwAXgAkAEAmAFhoAGwBqoBAjEwuAEDyAEA-AEBmAIJoALiBcICBRAhGKsCmAMAiAYBkgcBOaAH6SSyBwE5uAfiBcIHAzMuNsgHDA&sclient=gws-wiz-serp
In Cooks case, the bank must have gone bankrupt, so we gotta press charges on the social, the official legal scholarly journal of the Govt.
https://www.federalreserve.gov/aboutthefed/bios/board/default.htm
https://en.wikipedia.org/wiki/Abbe_Lowell
she was appointed to by former U.S. President Joe Biden in 2022.
'I will continue to carry out my duties to help the American economy.'
Lowell said that Trump's 'demands lack any proper process, basis or legal authority.
We will take whatever actions are needed to prevent this attempted illegal action.'"
No other president has attempted to fire a Fed governor.
This will be a very interesting legal battle!
https://www.cnbc.com/2025/08/26/trump-fed-cook-respond-court.html
13 Sept., '24:
https://www.centralbanking.com/central-banks/governance/7962281/oig-says-bostic-violated-feds-rules-and-policies
a Federal Reserve governor was relatively subdued. Don’t let that fool you.
If Trump’s effort to remove Lisa Cook for cause succeeds, and perhaps even if it doesn’t,
this week will go down as one of the most consequential for financial markets in decades."
https://www.msn.com/en-us/money/markets/get-ready-for-the-end-of-fed-independence/ar-AA1LhSsd
Public part is the Federal Reserve Board (FRB) with 7 Governors that include 1 Chair & 2VCs. All are nominated by the President & confirmed by the Senate.
Private part is 12 Federal Reserve Banks with government charters of supervising banks in their regions, participation in FOMC meetings (only 5 of 12 can vote, but all participate in discussions). NY Fed has a permanent vote & also the position of FOMC VC (not the same as Fed VCs), so 4 remaining votes rotate among the rest 11 Fed Banks. These Fed Banks have their own Boards that decide on their Fed Bank Presidents. Nominally, they are also approved/endorsed by the Federal Reserve Board (FRB).
The linked WSJ article via MSN notes that this proforma approval of Fed Bank Presidents by FRB may be used to exert more control on the makeup of 12 Fed Banks. That may disrupt the private part quickly.