Lisa Cook to Keep Federal Reserve Position as Rate Cut Decision Approaches
Stocks are on the rise as investors expect a rate cut from the Federal Reserve which still has Lisa Cook as its governor.
Quick overview
- An appeals court judge ruled that Federal Reserve Governor Lisa Cook can retain her position despite President Trump's attempt to fire her.
- Cook will participate in the upcoming Federal Reserve rate decision meeting, which is crucial for determining potential rate cuts.
- The stock market is experiencing gains in anticipation of a possible rate cut, with expectations of a 25 to 50 basis point reduction.
- Tech stocks, including Tesla, Apple, and Alphabet, are seeing significant increases as investors remain optimistic about market performance.
An appeals court judge ruled late Monday night that Federal Reserve Governor Lisa Cook can keep her job at the Fed for now despite President Donald Trump’s attempt to fire her.
Cook will continue to serve as the central bank’s governor thanks to an appeals court decision that countermands Trump’s order to fire her. The Federal Reserve rate decision meeting takes place Wednesday, and Cook will have her say at that crucial meeting to decide if the board votes the way Trump wants them to or if they vote against a rate cut.
The Federal Reserve will be meeting starting on Tuesday, but the important rate decision is scheduled to be made on Wednesday. Cook will have the opportunity to cast her vote on several decisions. Also joining the Federal Reserve for these meetings is the newly added Governor Steve Miran. He is replacing Adriana Kugler, and Miran is stepping away from a CEA position to serve the central bank for now.
Stocks Surge in Hopes of a Cut
The stock market is climbing this week, anticipating a rate cut from the Federal Reserve. The general consensus is that this cut will be 25 basis points, although it could be as high as 50 basis points. While a very high rate cut is less likely and far less common, it is possible since there has not been a rate cut since late last year.
The stock market tends to do well up to the point where a new rate cut is announced and then often rallies after a rate cut. With the stock market already sitting at record highs for all three major indices (Dow Jones, S&P 500, and the Nasdaq), we may see an unprecedented upward movement from the market this week when a rate cut is announced.
Tech stocks are doing particularly well, with increases for Tesla (TSLA), Apple (APPL), and Alphabet (GOOGL) all recorded for Tuesday. The market is still high from last week’s slightly bullish direction, and investors are anticipating some incredible gains before the week is over, especially from some of the better performing stocks recently.
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