1 00:00:02,560 --> 00:00:10,479 Speaker 1: Bloomberg Audio Studios, Podcasts, radio News. This is a breaking 2 00:00:10,560 --> 00:00:15,480 Speaker 1: news update from Bloomberg, instant reaction and analysis from our 3 00:00:15,520 --> 00:00:20,200 Speaker 1: three thousand journalists and analysts around the world. I'm Doug Krisner, 4 00:00:20,200 --> 00:00:23,640 Speaker 1: and we do have breaking news regarding the Federal Reserve. Tonight, 5 00:00:23,720 --> 00:00:28,360 Speaker 1: President Trump removed Governor Lisa Cook. This is effective immediately. 6 00:00:28,680 --> 00:00:31,000 Speaker 1: You may recall last Friday, Trump said he would fire 7 00:00:31,080 --> 00:00:34,519 Speaker 1: Cook if she did not resign over accusations of alleged 8 00:00:34,560 --> 00:00:37,640 Speaker 1: mortgage fraud. For a closer look, now, I'm joined by 9 00:00:37,640 --> 00:00:41,480 Speaker 1: Bloomberg's and the current He is Global Economy reporter joining 10 00:00:41,600 --> 00:00:45,760 Speaker 1: us from Washington, DC, and it's always a pleasure directionally 11 00:00:45,800 --> 00:00:48,120 Speaker 1: if you look at the developments over the last week, 12 00:00:48,560 --> 00:00:52,760 Speaker 1: this move seems to have been entirely predictable, does it not. 13 00:00:53,440 --> 00:00:57,360 Speaker 2: Well, it's fast moving job, no doubt about it. And 14 00:00:57,440 --> 00:00:59,880 Speaker 2: we're into something of on presea of the territory here, 15 00:01:00,000 --> 00:01:02,640 Speaker 2: because they now have a president removing a Fed governor 16 00:01:03,040 --> 00:01:07,160 Speaker 2: for cause, not something money are familiar with. So at 17 00:01:07,160 --> 00:01:09,640 Speaker 2: the very least, there's probably going to be some legal 18 00:01:10,240 --> 00:01:13,039 Speaker 2: debate over this, whether or not the president has the powers, 19 00:01:13,280 --> 00:01:15,200 Speaker 2: whether or not the grounds they're there for that, and 20 00:01:15,280 --> 00:01:18,080 Speaker 2: of course we have to await miss Cook's response. She 21 00:01:18,160 --> 00:01:20,320 Speaker 2: said she wouldn't be bullied out of her position and 22 00:01:20,360 --> 00:01:22,640 Speaker 2: had said she would come back with an explainer about 23 00:01:22,680 --> 00:01:25,319 Speaker 2: the allegations of mortgage row in the first place. So 24 00:01:25,319 --> 00:01:28,120 Speaker 2: there's the whole legal side of this that probably needs 25 00:01:28,120 --> 00:01:33,200 Speaker 2: to play out. But on face value, the President appears 26 00:01:33,240 --> 00:01:36,840 Speaker 2: to have removed a governor at a very critical juncture 27 00:01:36,920 --> 00:01:40,040 Speaker 2: for FED policy, at a time when's key appointments are 28 00:01:40,080 --> 00:01:43,000 Speaker 2: coming up for vacancy, at a time when the President 29 00:01:43,040 --> 00:01:44,840 Speaker 2: is very critical up to set for not bringing them 30 00:01:44,959 --> 00:01:47,800 Speaker 2: interest rates. So certainly would suggest that if this vacancy 31 00:01:47,800 --> 00:01:51,520 Speaker 2: does come through, it's another it's an opportunity for the 32 00:01:51,520 --> 00:01:53,400 Speaker 2: President to put someone in there who shares his view 33 00:01:53,440 --> 00:01:54,160 Speaker 2: on the economy. 34 00:01:54,280 --> 00:01:56,680 Speaker 1: So last week we know that Bill Pulti, he is 35 00:01:56,720 --> 00:02:00,240 Speaker 1: the head of the Federal Housing Finance Agency, referred this 36 00:02:00,360 --> 00:02:05,040 Speaker 1: case to the Department of Justice for some type of investigation. 37 00:02:05,160 --> 00:02:09,960 Speaker 1: Do we know whether that has taken place so far, We. 38 00:02:09,880 --> 00:02:12,520 Speaker 2: Don't have much satonal on that, but clearly has just 39 00:02:12,600 --> 00:02:16,280 Speaker 2: been fast moving since the emerged only last week maybe 40 00:02:16,320 --> 00:02:18,480 Speaker 2: mid last week, to where we are now. It's a 41 00:02:18,480 --> 00:02:21,760 Speaker 2: pretty quick moving exercise. But by all accounts, the President 42 00:02:21,840 --> 00:02:25,239 Speaker 2: seems to have made his own decision on this jog. 43 00:02:25,960 --> 00:02:27,840 Speaker 2: It's clearly going to come as a surprise I think 44 00:02:27,880 --> 00:02:30,160 Speaker 2: a lot of observers and analysts that has reached the 45 00:02:30,160 --> 00:02:32,440 Speaker 2: point that the House so quickly, and now that raises 46 00:02:32,440 --> 00:02:34,600 Speaker 2: the questions out where next. And as they're saying earlier, 47 00:02:34,639 --> 00:02:36,800 Speaker 2: on the one hand, one would assume there's still a 48 00:02:36,880 --> 00:02:40,000 Speaker 2: legal story and is to play out. And then on 49 00:02:40,040 --> 00:02:42,200 Speaker 2: the other side you have to ask, well, what does 50 00:02:42,200 --> 00:02:44,240 Speaker 2: it mean for policy? Will this vacancy come through, and 51 00:02:44,280 --> 00:02:47,040 Speaker 2: therefore what does it mean for where introts are headed 52 00:02:47,080 --> 00:02:49,919 Speaker 2: near terms? So it's quite a significant moment for the FED, 53 00:02:50,080 --> 00:02:53,160 Speaker 2: both legally in terms and in terms of its in standing 54 00:02:53,200 --> 00:02:55,960 Speaker 2: independent standing from the White House, and of course on 55 00:02:56,000 --> 00:02:56,679 Speaker 2: the policy front. 56 00:02:56,720 --> 00:03:00,240 Speaker 1: Two, is there risk I mean, at least from the 57 00:03:00,240 --> 00:03:01,800 Speaker 1: point of view of the markets, that we're going to 58 00:03:01,919 --> 00:03:05,240 Speaker 1: see much less independence on the part of the Fed. 59 00:03:05,960 --> 00:03:09,040 Speaker 2: Well, look, there will be a perception about this. Much 60 00:03:09,080 --> 00:03:12,799 Speaker 2: will depend on what comes out of the legal side 61 00:03:12,800 --> 00:03:15,040 Speaker 2: of this, whether or not these allegations stand up in 62 00:03:15,080 --> 00:03:17,800 Speaker 2: the first case, for example, but there certainly will be perception. 63 00:03:17,919 --> 00:03:20,320 Speaker 2: And it said it's more political pressure under FED for sure. 64 00:03:20,440 --> 00:03:23,639 Speaker 1: Thank you so much, Bloomberg. SENDI Kerrent, global economy reporter 65 00:03:23,760 --> 00:03:27,000 Speaker 1: joining from Washington, d C. Helping us understand a little 66 00:03:27,000 --> 00:03:29,800 Speaker 1: bit more about the breaking US tonight regarding the FED, 67 00:03:29,840 --> 00:03:35,160 Speaker 1: President Trump removing Governor Lisa Cook, effective immediately last Friday. 68 00:03:35,200 --> 00:03:37,880 Speaker 1: He said that he would fire Cook if she did 69 00:03:37,880 --> 00:03:41,480 Speaker 1: not resign over accusations about alleged mortgage fraud.