Blue Press Journal

Tag: Fed chair

  • Fed Governor Lisa Cook Sues President Trump Over Removal Threat

    Blue Press Journal (DC) – In a courageous move, Federal Reserve Governor Lisa Cook has filed a lawsuit against US President Donald Trump, claiming that he has no authority to remove her from office. The lawsuit, filed on Thursday, argues that Trump’s announcement on August 25 to fire Cook violates a federal law that only allows the president to remove a Fed governor for cause.  “For cause” is generally understood to mean gross misconduct, such as malfeasance (wrongdoing), neglect of duty, or significant inefficiency while in office. 

    Cook, the first Black woman to serve on the Fed’s governing body, was appointed by former President Joe Biden in 2022. Trump, a Republican, has accused Cook of committing mortgage fraud in 2021, a year before she joined the Fed. However, experts have questioned whether these transactions, which were public record at the time of her appointment and confirmation by the US Senate, constitute adequate cause for removal.

    The lawsuit raises concerns about the Fed’s independence from the White House in setting monetary policy, which may affect the global economy. Following Trump’s announcement to remove Cook, the US dollar weakened against major currencies.

    Cook’s lawyers argue Trump’s demands lack a proper basis or legal authority. Cook stated that “no causes exist under the law,” asserting that Trump has no power to remove her.

    This latest development has sparked concerns about Trump’s ongoing attempts to undermine the country’s checks and balances. Critics argue that Trump’s actions are a clear example of executive overreach, threatening the independence of institutions like the Federal Reserve.

  • Fed Chair Issues Warning on Trump Tariffs

    Federal Reserve Chair Jerome Powell delivered a stark warning on Friday, revealing that President Trump’s new tariffs are causing far more economic damage than initially anticipated. The sheer size and potential harm of these tariffs have thrown the bank’s efforts to combat inflation into disarray.

    Powell emphasized that the magnitude of Trump’s reciprocal tariffs has surpassed all expectations, posing a significant risk of long-term inflation spikes. The uncertainty surrounding these tariffs remains high, but it is becoming increasingly evident that the economic repercussions will be much more severe than previously thought, leading to heightened inflation and sluggish growth.

    Meanwhile, President Trump, seemingly unfazed by the chaos he has unleashed, took a break from his golf tournament in Florida to launch a scathing attack on Fed Chairman Jerome Powell for actually stating the truth. 

    In a retaliatory move, China announced a staggering 34% tariff on all U.S. imports starting April 10, in response to Trump’s aggressive tariff policies. The Commerce Ministry in Beijing also revealed plans to tighten export controls on rare earths, crucial materials for advanced technology products.

    As the trade war escalates, it is clear that the pain inflicted by Trump’s tariffs is only intensifying, with more countries retaliating with their own tariffs. The future looks bleak as the world braces for the economic fallout of this escalating trade conflict.