The Big Money Show Panel discussed the decision to fire Federal Reserve Board Governor Lisa Cook on the decision of President Donald Trump on the decision of the hostage fraud.
A prominent leader in the world economy is warning that improper intervention by the President in the operation of Federal Reserve Donald Trump A serious economic risks can cause a serious economic risk to the US and the rest of the world.
European Central Bank President Christine Lagarde said in an interview with Radio Classic on Monday that efforts to remove Fed Chair Zerome poly Or Fed Governor Lisa Cook “will represent a very serious threat to the American economy and the world economy.”
“If the American monetary policy was no longer independent and was dependent on the orders of this or that person, I believe that the impact on the balance of the US economy, its effects around the world, can be very worrying, as it is the world’s largest economy,” Lagard explained.
Trump has repeatedly threatened Pavel, whom he appointed as president in 2017, to not cut the benchmark Federal Fund rate of Fed – although he has supported those threats in this summer as Pavel’s tenure is scheduled to end in May 2026.
Trump asked the courts to allow Fede’s Lisa Cook to immediately remove; Judge sets quick schedule
European Central Bank President Christine Lagard said that the change in Fed’s independent monetary policy could cause damage to the US economy. (Tinge Shane / Bloomberg Getty Image / Getty Image)
Bill Pul Bridge, an associate of President Trump and Director of Federal Housing Finance Agency, is trying to fire Cook even after filed criminal referrals, alleging that Cook committed hostage fraud before joining the Fed. Cook has not been accused of a crime, while Cook’s case is currently playing in court to prevent him firing by Trump.
It is not clear that the federal courts will agree that a criminal referral, in the absence of real criminal allegations or final guilty, meets a fed governor’s standard to remove “for reason”. In other federal agencies, the “for Cose” is usually interpreted as implementing in cases of malfunction or misconduct.
Fed Chair Jerome Powell and Fed Governor Lisa Cook speak during the June 2025 meeting. (Through Saul Loaib / AFP Getty Image / Getty Image)
Trump’s attempt to firing Cook is the first time in American history that the President has tried to remove a sitting governor, and can reach the case as a result of the innovation of the situation. Supreme CourtIf the President is capable of successfully removing Cook, it will allow him to appoint a replacement that may favor his stand on cuts cuts.
The freedom of the Federal Reserve with political influence in its monetary policy decisions has been credited as a significant security for the American economy and its role in the global economy. Economic research has found that political intervention has contributed to central banks around the world. High inflationDecreased weak currencies and stock prices.
Goldman Sachs says that Central Bank is economic results to reduce independence
European Central Bank President Christine Legarde warned that President Trump was a serious economic risk to reduce the freedom of fed to Powell or Fed. (Through Saul Loaib / AFP Getty Image / Getty Image)
Fed has cut interest rates in all its five meetings this year. To what extent uncertainty Trump’s tariff Either will represent an increase in the price of one time or create more frequent inflation pressure.
Two most popular inflation gauges – consumer price Index (CPI) and personal consumption expenditure (PCE) index that prefers Fed – during this year the 2% of the fed has been above the target rate and has shown signs of growing as tariffs work in their own way through the economy.
The July PCE print released last week revealed that the headline PCE was up 2.6% above a year ago, while the core PCE, which excludes unstable food and energy prices, was more than 2.9%. Among the July CPI data, the headline inflation was 2.7% year-over year, while the core CPI was up 3.1% from the previous year.
Fed Chair Zerome Powell Signal Job Market, Inflation Outlook may allow for interest rate cuts
Fed Chair Jerome Powell, Bank of Japan Governor Kazuo Uaida, ECB President Christine Lagarde and Bank of England Governor Andrew Bailey at the Jackson Hole Conference of Fed. (David Paul Morris / Bloomberg Getty Image / Getty Image)
However, A Weak July job reports Has expressed concern over deteriorating in the labor market and Powell indicated in his speech at the Central Bank’s annual conference in Jackson Hole that the changing balance of risks for the double mandate of the Fed could open the door to cut a rate.
The Fed panel responsible for the decisions of the Central Bank’s Federal Open Market Committee (FOMC), the Fed panel responsible for the decisions of monetary policy, August CPI print will take a new look at the inflation figures when released next week.
This week’s August job reports will help Fed policy makers to inform the Fed Policy makers before their next meeting and the interest rate decision on 17 September.
Get Fox Business when you click here
The market is cutting a 25-base-point cut in the fed benchmark Federal Fund rate at September meeting, with the CME Fedwatch Tool showed 89.7% probability of cut of that size.
Reuters contributed to this report.
