September is typically tough for financial markets, but Donald Trump's actions regarding the Federal Reserve have exacerbated the situation. This article explores the circumstances surrounding the removal of Fed member Lisa Cook and the subsequent market reactions.
Situation with Lisa Cook and Her Removal
Donald Trump decided to remove Fed member Lisa Cook, prompting a governmental investigation. Speculations around Cook’s dismissal due to her support for lower interest rates heightened concerns regarding the Fed’s independence. Her successor, Miran, is set to take office following Senate approval. Officials claim Cook did not support the measures favored by Trump, leading to her removal.
Cryptocurrency Market Reaction
Following the announcements surrounding Lisa Cook, the price of Bitcoin fell below $110,000. Investors began to worry about potential volatility in global markets due to threats to the independence of the Fed. Cook asserts that the reasons for her dismissal are based on unfounded claims regarding her activities before 2021.
DOJ Investigation Details
The U.S. Department of Justice initiated a criminal investigation into Lisa Cook, issuing a subpoena to determine whether she provided false information in mortgage applications. Her defense focuses on the argument that any alleged wrongdoing occurred before her appointment to the Fed. The court is deliberating on the possibility of halting her removal while legal proceedings continue.
The escalating situation surrounding Lisa Cook and the prospect of her removal, combined with market reactions, are likely to induce further fluctuations in the cryptocurrency sector in the coming days.
