Sharing the above letter yesterday on his social media platform of choice, TruthSocial, President Trump has made his intentions to fire Governor Cook clear, citing alleged mortgage fraud.
While matters of fraud amongst government officials would not typically be of such interest to financial markets, the move reignites discussion whether any US government should have the power to fire Federal Reserve officials, considering political independence is a core tenet of the institution.
Supposing Trump successfully removes Cook from office and overcomes various legal hurdles, an interesting precedent will be set, especially considering that Trump has been clear in his dislike for Powell and his policy of higher interest rates.
Regarding USD/CHF price action, any developments suggesting that Trump can wrangle more control of the Federal Reserve and its employees and, therefore, appoint governors who favour an aggressive lowering of interest rates will likely introduce some dollar-franc selling pressure.
As such, the next few days remain crucial, especially with USD/CHF hovering around the key level of 0.80000.