U.S. stock market calm may be misleading after a week of major financial developments. President Donald Trump dismissed Federal Reserve Governor Lisa Cook, a move that could end the Fed's 74-year independence and place monetary policy under White House influence. Trump previously sought to remove Chairman Jerome Powell and fired the head of labor statistics for unfavorable employment data. The administration has intervened in private companies, including taking a 10% stake in Intel, marking an unprecedented extension of state involvement. Long-standing Republican economic liberalism has eroded, shifting toward centralized control reminiscent of emerging-market or authoritarian practices.
Although the calm of the stock markets may be misleading, the United States has experienced one of the most momentous weeks for financial markets since the banking crisis 15 years ago. President Donald Trump's decision to dismiss Federal Reserve Governor Lisa Cook (who sued the president on Thursday) could end the organization's 74 years of independence, and subject monetary policy to the whims of the White House.
Before his battle with Cook, Trump had already attempted to remove Federal Reserve Chairman Jerome Powell over the latter's refusal to lower interest rates to his liking. Earlier this month, the president fired the head of labor statistics for publishing employment data that he disliked. Trump wants to make it clear who's in charge, and he considers the slightest uncomfortable remark to be dissent.
#federal-reserve-independence #white-house-economic-intervention #intel-investment #financial-markets
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