According to CCTV news reports, on August 25th, local time, US President Trump published a letter to Federal Reserve Governor Lisa Cook on his social media "Real Social", announcing his immediate dismissal.

Director of the Federal Reserve, Lisa Cook (Photo)

It is also reported that this is the first time that a U.S. president has fired a Fed governor since the Fed's 111-year history, marking a public escalation of the struggle between the White House and the world's most powerful central bank.

Combated

Trump: "I have no confidence in your integrity"

Trump gave "reasons" in a letter to Cook. Trump wrote: "I have determined that there are good reasons to remove you from office."

The "reason" he cited was the issue of "mortgage fraud" allegations that Mr. Cook has been grappling with recently. "Given your deceptive and potentially criminal conduct in financial matters... I have no confidence in your integrity," Mr. Trump said sternly in the letter. "At a minimum, the conduct demonstrated gross negligence in financial transactions, raising questions about your competence and credibility as a financial regulator."

Trump posted a letter to Federal Reserve Governor Cook on social platforms, announcing his removal

The accusation was initially raised by the Federal Housing Financial Bureau director Purt, who has filed a criminal case with the U.S. Department of Justice. According to relevant documents, the core of the accusation is that Cook had applied for mortgages for two different properties, but listed both properties as his ¡°main residence¡±. Currently, the U.S. Department of Justice has planned to investigate this, but Cook himself has not been brought any criminal charges.

Cook previously stated: "I will not resign because of bullying"

Lisa Cook is an economist and the first black woman to serve on the Federal Reserve Board of Governors.

Last week, Ms Cook issued a statement saying she would not resign over "bullying", saying: "I have no intention of resigning for bullying because of some issues raised in a tweet. As a member of the Federal Reserve, I intend to take any questions about my financial history seriously and am gathering accurate information to answer questions and provide facts."

This week, however, she got a dismissal order. At present, Cook has not issued a response.

The Associated Press reported that Cook stressed that she would not resign because of Trump's "bullying"

behind the scene

Is the accusation just an excuse?

Trump¡¯s real goal is the Federal Reserve¡¯s independence

Many industry analysts believe that the personal "mortgage fraud" allegations against Lisa Cook are just an excuse and that Trump's real goal is the independence of the Federal Reserve.

For a long time, Trump has publicly accused Federal Reserve Chairman Jerome Powell and his colleagues of "acting too slowly" on the issue of interest rate cuts, and believes that this has dragged down the performance of the US economy and stock market. However, the original intention of the Federal Reserve's design is precisely to be independent of politics and make decisions based on pure economic data, so as to achieve the dual missions of "stabilizing prices" and "supporting employment".

Alan Blinder, former vice chairman of the Federal Reserve, pointed out: "Sadly, the big picture is simple: the Fed was designed to be independent of politics, and for good reason. He (Trump) is trying to end this and make it a branch of the Trump administration, and if that does happen, it will be very bad for monetary policy."

Former US Treasury SecretarysummersHe also expressed doubts about Trump's motives, which he believed was a "questionable politicization" and that anyone concerned about the independence of the U.S. system should be wary of.

"This allegation, even at face value, alleges conduct that I suspect many people, including in Washington, have done," Mr. Summers said. "I have to say that the use of prosecutorial tactics against political opponents, whether it's the FBI's door-to-door search of John Bolton's house or the current attack on Lisa Cook, I think should send shivers through many Americans."

Does the president have the authority to do so?

Or initiate a lawsuit, the trial may go to the Supreme Court.

So, does Trump really have the right to fire Fed governors? This is a blur zone in the American legal community.

According to the relevant law, the president of the United States can only remove the governor of the Federal Reserve "for cause", but what constitutes a sufficient "reason" is not clearly defined by law. Some analysts pointed out that while the Supreme Court has repeatedly supported Trump's removal of other executive branch officials, the justices have said that they regard the Federal Reserve as a "quasi-private entity with a unique structure", an exception.

As a result, Trump¡¯s decision could trigger a fierce legal lawsuit that could hit the Supreme Court.

Elizabeth Warren, the senior Democrat on the Senate Banking Committee, issued a statement condemning Trump's actions as "an authoritarian power grab that blatantly violates the Federal Reserve Act and must be overturned in court." "This is a desperate president looking for scapegoats for his failure to reduce the cost of living for Americans," she added.

Financial markets also gave a reaction. Immediately after Trump's announcement, the U.S. dollar index, which measures the strength of the US dollar, fell 0.3%.

As of now, the Federal Reserve official has not commented on this matter.

Red Star journalist Deng Shuyi comprehensive CCTV news