The court battle over the future of the Federal Reserve begins today

[LetMyPeopleVote]

I may listen in
If governor Lisa Cook is removed, “the outcome would be momentous,” said JPMorgan chief U.S. economist Michael Feroli.

Link to tweet

https://www.nbcnews.com/business/economy/lisa-cook-sues-trump-administration-hearing-what-to-know-rcna227888

At 10 a.m. ET, a federal court in Washington, D.C., will hold a hearing over Lisa Cook’s removal from the Federal Reserve. But the court battle will shape much more than the future of Cook’s tenure at the central bank.

At stake is the independence of the Federal Reserve, the world’s most important central bank.

As noted by JPMorgan chief U.S. economist Michael Feroli, Cook’s firing from the Fed, if successful, “would create the second vacancy on the board in less than a month and would allow the president to move that body in a direction more to his liking.”

“If the president were successful, the outcome would be momentous,” Feroli added.

Gaining a majority on the Fed’s board does not automatically give Trump’s nominees power to raise, lower or keep interest rates unchanged, but his nominees could, as soon as February, decline to renew or confirm a fresh four-year term for regional Fed bank presidents who get a vote on interest rates.

Those presidents are key to the 12-member Federal Open Market Committee, which comprises the Fed chair, six Fed governors and five regional Fed presidents. Those presidents come from Federal Reserve banks from New York and San Francisco to Chicago and Atlanta.

[Swede]

1. Once the Fed is compromised, investors will move their money to a safer place. In another country.

Trump pulls another piece out the Jenga tower that is America.