Fed governor Adriana Kugler announced her resignation and President Trump nominated Council of Economic Advisers head Stephen Miran to fill the vacancy. Pressure is mounting on Fed governor Lisa Cook to resign after Federal Housing Finance Agency Director Bill Pulte asked the Department of Justice to investigate allegedly fraudulent mortgage applications made by Cook in 2021. President Trump publicly demanded that Cook "must resign, now!!!" If Cook leaves, the Federal Reserve could lose a second vote opposing lower interest rates. Fed Chair Jerome Powell may retain his position and the Federal Open Market Committee could vote to lower rates. Investors reacted nervously, with the Vanguard S&P 500 ETF down 0.4% in premarket trading.
The Wall Street Journal reports this morning that Federal Housing Finance Agency Director Bill Pulte is asking the Department of Justice to investigate allegedly fraudulent mortgage applications made by Federal Reserve Governor Lisa Cook in 2021, a year before she took office. President Trump says Cook "must resign, now!!!" If he gets his way, a second vote against lowering interest rates at the Fed may vanish.
The way things are going, the Fed Chair Jerome Powell may be able to keep his job - and the Federal Open Market Committee will still vote to lower interest rates. You'd think investors would applaud the prospect (because lower interest rates are generally considered "good" for the stock market). Instead, in premarket trading, the Vanguard S&P 500 ETF ( NYSEMKT: VOO) is down 0.4%.
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