The White House has revived its attempt to remove Federal Reserve Governor Lisa Cook over mortgage fraud allegations she denies, two months after the Supreme Court allowed her to retain her position while fighting the termination effort. A letter from White House aide Dan Scavino gives Cook three weeks to respond to the allegations.
The Federal Reserve kept its benchmark rate unchanged at 3.50%-3.75% on July 29, but three policymakers voted for a 25-basis-point hike—the first three-member dissent since 2016. Markets had priced in roughly 35% odds of a surprise hike.
Federal Reserve Chairman Kevin Warsh testified before Congress for the first time on Tuesday, pledging to make high inflation "a thing of the past" and calling for "regime change" at the central bank. He also vowed to "do my job" if challenged by President Trump, his most direct comment yet on maintaining Fed independence.
Congressional leaders announced a bipartisan agreement on the 21st Century ROAD to Housing Act, which includes provisions barring the Federal Reserve from issuing a central bank digital currency until 2030. The Senate previously voted 89-10 in favor of similar CBDC restrictions.
The Federal Reserve maintained interest rates unchanged in what is expected to be Jerome Powell's final FOMC meeting as chairman, with a split 8-4 vote creating uncertainty around future policy. Kevin Warsh cleared Senate Banking Committee approval to become the next Fed chair.
The Department of Justice closed its criminal investigation into Federal Reserve Chair Jerome Powell, passing the matter to the Fed's inspector general. The move clears a potential obstacle for Senate confirmation of crypto-friendly Kevin Warsh as Powell's replacement.
