The ruler of the Federal Reserve, Lisa Cook, is suing the Trump administration to prevent attempt to launch it star-news.press/wp

The US Federal Reserve Governor Lisa Cook filed a lawsuit against the Trump administration in an attempt to cancel the president’s attempt to shoot it, and to launch an unprecedented legal battle that could reshape the federal reserve independence for a long time.

The lawsuit seeks a judicial order to prevent fire from being shot and “confirming her status” as a member of the Federal Reserve Board of Directors.

The issue can become a turning point for the 112 -year -old Federal Reserve, which is designed by Congress to be isolated from the daily political influence. Economists prefer independent central banks because they can easily take unimaginable measures – such as raising interest rates to combat inflation – which elected officials can.

Many economists are concerned that if the Federal Reserve falls under the control of the White House, this will maintain the main interest rate less than what is justified by the economic basics to meet the Tram’s demands.

This can be allowed to rise more quickly and may also raise interest rates in the long run, such as those on mortgages and car loans. Investors may ask for a higher return to possess bonds to make up for more inflation in the future, which increases borrowing costs throughout the economy.

“If Cook wins, it will remain in its place and achieve some aspects of stability,” said Peter Conte Brown, professor of financial organization at the University of Pennsylvania. “If you lose … this is the end of the federal reserve independence as it was built and rebuilt over 112 years.”

No president was seeking to expel the governor of the Federal Reserve, until Donald Trump published a speech on the social media platform in fact late on Monday, saying that Cook was launched. Trump said the reason for removing it was allegations that she had committed the mortgage fraud in 2021, before her appointment to the Board of Directors.

The United States Supreme Court indicated that the president cannot shoot officials in politics, but he can do so “for the reason”, and usually means misconduct or neglecting duty. Cook was not accused of any crime.

The lawsuit, which was filed by Cook Abe David Lowell, says these allegations do not involve misconduct by Cook while he was in office and has not been proven. The lawsuit says that Cook should also give an opportunity to respond to the fees.

The lawsuit says: “The allegation, which is baseless and not proven, is that the ruler is cooked.

“Allowing the president to remove the members of the Board of Directors due to political differences would also make an illusion of independence of the Council,” the lawsuit said.

The president’s decision comes as it has repeatedly attacked the President of the Federal Reserve, Jerome Powell and other members of the Federal Reserve Bank, to not reduce the short -term interest rate that they control more quickly. It is currently 4.3 percent, after the FBI policymakers reduced it at a full percentage of last year. Trump said he believed he should reach 1.3 percent, a level that none of the economists support.

The lawsuit argues that fraud in mortgage is simply an excuse to shoot cooking because it has not voted to reduce interest rates. “The mortgage allegations against it are an excuse, in order to affect its rapid removal and evacuate President Trump’s seat to fill his agenda and re -direct it to undermine the independence of the federal reserve.”

Powell pointed out last week that the central bank was inclined to reduce its average at its next meeting from 16 to 17 September, but the Federal Reserve is likely to reduce its main rate more than Trump wanted.

If Trump is able to replace Cook, he may be able to get 4-3 majority on the Federal Reserve Board. Trump appointed two members of the board of directors during his first term and nominated a major economic advisor for the White House, Stephen Miran, to replace Adriana Koger, another ruler of the Federal Reserve, unexpectedly resigned on August 1.

Trump said that only people at the Federal Reserve who will support fewer rates will be appointed.

The Federal Reserve is extensively powerful on the American economy by setting a short -term interest rate that can affect the wider borrowing costs of things such as mortgages, car loans and business loans.