When Federal Reserve Chairman Kevin M. Warsh holds his post-meeting news conference Wednesday, he faces questions beyond monetary policy: a renewed White House effort to oust Fed Governor Lisa D. Cook over alleged mortgage fraud she denies. The administration plans a private hearing Nov. 5 to grill Cook, which her lawyers call politically tainted.
Cook, who dissented Wednesday favoring a quarter-point increase, continues serving while her lawyers cite scheduling conflicts and foreign travel to avoid the hearing. This follows Trump's first firing attempt, blocked by Cook's lawsuit that reached the Supreme Court. In June, justices ruled Trump should have given Cook a proper chance to respond.
Warsh has walked a fine line, defending Fed independence while avoiding comment on the charges or Trump's pressure for lower rates. During his confirmation hearing, Warsh said: "If I stand for anything, it's the Fed should stay in its lane," declining to weigh in on Cook's tenure. The standoff threatens the central bank's century-old mission of political independence.
Source: New York Times Business · Summarized by HeadlinesBriefing