Trump took the pen and signed his name on a document at this moment, he created American history ¨C the first president to dismiss the Federal Reserve directly.

The one who was expelled was Federal Reserve Governor Cook. The reason sounds a bit outrageous: When applying for a mortgage, she filled two houses in Michigan and Georgia as "main residences."

The dollar index jumped 30 points instantly.The price of gold hit chicken blood and rose $20 in one breath.The global financial markets are asking the same question: What is Trump doing?

1. A "wonderful" dismissal letter

Trump¡¯s resignation letter read, ¡°Dear Governor Cook, you have been dismissed under the authority granted to me by Article 2 of the Constitution, and it comes into effect immediately.¡±

Purt, director of the Federal Housing Financial Bureau, that Cook had ¡°found two boats¡± when applying for a loan in 2022 ¨C on August 15 she wrote ¡°This is my main residence¡± on her loan application in Michigan; and two weeks later she wrote the same on her loan application in Georgia.

Pulter¡¯s logic is simple: You can¡¯t live in two places at the same time, so Cook must have lied.

In his resignation letter, Trump said: ¡°The American people cannot, nor can I, trust your integrity.¡±

To put it bluntly, the mortgage thing is just an excuse.

What Trump really wants is for the Federal Reserve to cut interest rates. Since taking office at the beginning of the year, he has called for "interest rates" on social media more than 50 times. But Federal Reserve Chairman Powell just didn't buy it and stayed put.

Now it's better to directly expel the disobedient directors. If this is successful, Trump can nominate one of his own. Including previously nominated Waller and Bowman, he holds three seats on the seven-member council, nearly half.

The Wall Street Journal reporter spotted, ¡°This is naked blackmail, forcing the Federal Reserve to cut interest rates.¡±

2. A legal battle looms

The question is, is Trump doing so legally?

The Federal Reserve Act of 1913 stipulates that the president can only fire Fed governors "with good reason". What is a sufficient reason? The law is not clear, but everyone's default understanding is that there must be problems serious enough to affect the performance of duties.

By filling out the wrong loan application to dismiss the central bank director?

Cook responded that day: "I will never quit because of a tweet." The implication: Come on if you want to go to court.

The New York Times predicts that the matter will eventually go to the Supreme Court. If the judge rules that Cook can continue to perform his duties during the litigation, Trump's wishful thinking will be lost.

Why should the Federal Reserve be independent of the government? To put it bluntly, it is to prevent politicians from messing with monetary policy for short-term interests.

Imagine what would happen if the president could control interest rates at will? Crazy interest rates cut before the election stimulated the economy, and inflation exploded after the election, and people paid for the bill. This kind of thing has happened in many countries, and the results are all disasters without exception.

So the Americans designed a ¡°firewall¡± for the Federal Reserve: board members for 14 years, spanning several governments; the president can¡¯t unwillingly dismiss them; monetary policy decisions are independent, free from political interference.

Now Trump's dismissal order is tantamount to cutting a hole in the firewall. If he succeeds, any president in the future can find a reason to expel disobedient directors. The independence of the Federal Reserve exists in name only.

Markets have begun to panic.

The reaction of financial markets speaks for itself.

The dollar index jumped, indicating that investors were worried that the Federal Reserve would come into turmoil after it was politicized; the rise in gold indicated that people were looking for shelter assets; and stock market shocks, indicating that uncertainty made everyone nervous.

"If Trump does control the Fed, all of our investment models will have to be rewritten," one hedge fund manager said privately.

What's worse is that this happened at a sensitive moment. The U.S. economy is at a crossroads: inflation has not yet been fully contained, but growth has begun to slow. The Federal Reserve has been walking on a tightrope, and now Trump is still shaking around.

Cook¡¯s case may only be the first shot.

Trump has spoken on social media: If Cook doesn't resign, he will fired her. Now he says it's done.

Keep in mind that Powell's term ends next year. If Mr. Trump succeeds in firing Mr. Cook, and Mr. Coogler, who recently resigned, leaves a vacancy, he could soon have a majority on the board. At that point, the Fed's surname will really be "special".

Interestingly, just a few days before Trump fired Cook, Powell had just relaxed at the Jackson Hole Annual Meeting: The situation "may require" the Federal Reserve to cut interest rates. Is this a concession or a delaying tactic? Now it seems that Trump obviously cannot wait.

Write at the end

In 1913, when the Americans designed the Federal Reserve system, they wanted to keep monetary policy away from politics.

Trump fired Cook, ostensibly because of the trivial matter of mortgage applications, but in fact he wanted to reshape the Federal Reserve. If he succeeds, U.S. monetary policy may become more "flexible"-or more unpredictable.

Your mortgage interest rates, deposit returns, and stock investments could all fluctuate dramatically because of the White House and the Fed¡¯s power game.

This unprecedented showdown has just begun. What will the Supreme Court decide? Will the Fed give in? Will the market crash?

The only thing that is certain is that the rules of the game of the American financial system are being rewritten, and we are all the spectators of this drama ¨C and potential victims.