Fed’s Cook to Vote at September FOMC Meeting Despite Trump’s Removal Push

Polymarket traders are betting that Fed Governor Lisa Cook will vote at the September FOMC meeting despite Trump’s attempt to remove her. While Cook hasn’t made her stance clear on where she stands on a Fed rate cut, her vote looks unlikely to turn the tide, as market participants price in a 25-basis-point (bps) cut following the meeting.

Lisa Cook To Participate In September FOMC Meeting: Polymarket

Polymarket data shows a 73% chance that the Fed Governor will vote at the September meeting, as the U.S. Central Bank decides whether to cut interest rates. This comes despite Trump’s attempt to fire over the mortgage fraud allegations.

Source: Polymarket

As CoinGape reported, Lisa Cook already sued the U.S. president, arguing that the move to remove her was illegal, as the mortgage allegation isn’t enough cause to remove her as stipulated in the Federal Reserve Act (FRA). As such, she asked the court to grant her an injunctive relief confirming her status as a member of the Fed Board.

The court heard the case yesterday but failed to give a ruling. However, in the absence of a court ruling, Lisa Cook still maintains her position as a Fed Governor and stated that she has no intention to leave despite the push from the White House. The Fed hasn’t indicated that Cook’s status on the board has changed, and Polymarket traders are also betting that Cook won’t leave her position this year.

There is currently only a 13% chance that she will be out as Fed Governor by September 30, which is why she is likely to vote at the next FOMC meeting, scheduled to take place between September 16 and 17. Meanwhile, there is a 31% chance that she will be out by December 31.

Source: Polymarket

A Rate Cut Likely To Happen Regardless Of Cook’s Vote

CME FedWatch data shows that the Fed is likely to make a 25-bps Fed rate cut at the September FOMC meeting regardless of whether Cook votes in favor or not. So far this year, she has consistently voted in favor of keeping rates unchanged, just like other FOMC members besides Chris Waller and Michelle Bowman, who dissented at the last meeting.

Source: CME FedWatch

It is worth mentioning that Cook’s lawyer, Abbe Lowell, accused Trump of attempting to fire the Fed Governor because of her monetary policy stance. However, Cook is considered a dovish voter and someone who has simply adopted Fed Chair Jerome Powell’s stance on monetary policy.

As such, with Powell signaling the need for a Fed rate cut at Jackson Hole, Cook may also move to vote for a cut at the September FOMC meeting. While her stance remains unclear, other FOMC members have indicated that they will vote in favor of a cut at the meeting.

Fellow Fed Governor Chris Waller clearly stated that he will vote in favor of a 25-bps rate cut. He also added that a 50 bps cut might be necessary if the August jobs data is weak.

Boluwatife Adeyemi

Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across several niches. His speed and alacrity in covering breaking updates are second to none. He has a knack for simplifying the most technical concepts and making them easy for crypto newbies to understand.

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Away from writing, he is an avid basketball lover, a traveler, and a part-time degen.

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Source: https://coingape.com/feds-lisa-cook-to-vote-at-september-fomc-meeting-despite-trumps-removal-push/