Trump’s push to control the fed raises fears of global economic shock

On Monday evening, Donald Trump announced he was removing U.S. Federal Reserve Governor Lisa Cook, accusing her of mortgage fraud.

The announcement came after Wall Street (U.S. stock exchanges) closed for the day.

Trump posted the decision in a letter on his Truth Social platform.

This is the first time a sitting Federal Reserve governor has been removed by a president, raising fears about political interference.

Analysts say the move could trigger a major legal battle, likely ending up in the Supreme Court of the United States.

Investors worry because the Federal Reserve’s independence is critical for global financial stability.

European markets fell:

Germany’s DAX index: down 0.5%

France’s CAC 40 index: down 1.6%

United Kingdom’s FTSE 100 index: down 0.6%

Asian markets also dropped:

Japan’s Nikkei 225: down 1%

Australia’s S&P/ASX 200: down 0.4%

South Korea’s KOSPI: down 1%

Hong Kong’s Hang Seng Index: down 1.2%

China’s Shanghai Composite: down 0.4%

On Monday, U.S. markets also slipped:

S&P 500 index: down 0.4%

Dow Jones Industrial Average: down 0.8%

Nasdaq Composite: down 0.2%

Traders still expect the Fed to cut interest rates in September, with an 84% chance of a quarter-point cut.

In currency trading:the U.S. dollar fell to 147.62 Japanese yen and the euro rose to $1.1637 U.S. dollars