Business
What Is The Federal Reserve And Why Trump Removed Its Governor
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“Trump’s unprecedented removal of US Federal Reserve Board Governor Lisa Cook comes amid his criticism that the central bank’s high interest rates hurt his economic agenda
If Trump succeeds in removing Lisa Cook, he will be able to nominate her successor, potentially reshaping the Fed’s governing board for the next several years. (AP/File)
President Donald Trump on Monday abruptly removed Lisa Cook from her position as a governor of the US Federal Reserve Board, effective immediately. Cook, who has not faced any accusations or convictions, said her dismissal lacks legal justification and confirmed she has no intention of resigning.
This unprecedented move by Trump comes amidst his outspoken criticism of the Federal Reserve for not reducing interest rates, which he believes undermines his efforts to strengthen the US economy.
Cook, the first black woman to serve as a Fed governor, stated, “President Trump attempted to dismiss me ‘with reason’, while there is no such reason under the law. He has no right to do so.” She affirmed, “I will not resign. I will continue to perform my duties to help the US economy, as I have been doing since 2022.”
Cook, who was appointed by former President Joe Biden, has engaged high-profile lawyer Abbe Lowell to represent her. Cook previously held positions at the US Treasury and the White House under former President Barack Obama.
Lowell commented, “President Trump has once again resorted to social media to ‘attack via tweet’ and once again his threatening response is flawed. His demands lack any due process, basis, or legal authority.” He emphasised, “We will take whatever action is necessary to stop his illegal action.”
He said that Cook plans to file a lawsuit challenging her dismissal. A Federal Reserve spokesman did not immediately comment on Trump’s letter.
This episode could lead to a prolonged legal battle, with significant stakes including the credibility of the US dollar as the world’s safe currency.
The Federal Reserve And Its Board of Governors
The US Federal Reserve comprises 12 reserve banks, each with a president, and a seven-member board of governors. The Fed has five key roles: conducting US monetary policy, promoting financial system stability, supervising and regulating financial institutions, promoting the safety and efficiency of payment and settlement systems, and promoting consumer protection and community development.
The Board of Governors, an agency of the US federal government, plays a crucial role in guiding the operations of the Federal Reserve System and overseeing the reserve banks. Its members are nominated by the President and confirmed by the Senate, but the board reports to and is directly accountable to Congress.
Allegations Against Cook
Trump has accused Cook of making false statements regarding loans on two houses in 2021.
He wrote, “For example, as detailed in the criminal referral, you signed a document certifying that a property in Michigan would be your primary residence for the next year.”
He continued, “Two weeks later you signed another document for a property in Georgia, stating that it would be your primary residence for the next year.”
Trump claimed that it is unthinkable that Cook was not aware of her first commitment when she made the second.
He concluded, “Given your deceptive and potentially criminal conduct in financial matters, the American people cannot trust your honesty and neither do I. At a minimum, this conduct demonstrates gross negligence in financial transactions, which calls into question your qualifications and credibility as a financial regulator.” Interest rates on loans for houses designated as primary residences in the US are low.
Legality Of Trump’s Move
Under the Federal Reserve Act, each member holds office for a term of fourteen years from the expiration of their predecessor’s term, unless removed earlier by the president for cause. ‘Cause’ typically means misbehaviour or incapacity while in office.
Trump stated, “I have found that sufficient cause exists to remove you from office.”
In a statement issued through her lawyers, Cook maintained that Trump had attempted to fire her without any legal cause or authority. Questions arise whether Cook can be fired while the investigation is pending and if Trump has sufficient evidence to claim ’cause.’
Historically, the US central bank has been shielded from direct political actions, and the US Supreme Court indicated this May that it is willing to provide broader protections to Fed governors.
The court stated, “The Federal Reserve is a uniquely structured, quasi-private entity that follows the distinguished historical tradition of America’s First and Second Banks.”
Potential Outcome If Cook Is Removed
If Trump succeeds in removing Cook, he will be able to nominate her successor, potentially reshaping the Fed’s governing board for the next several years. Fed governors typically serve 14-year terms. Two of the current seven governors, Christopher Waller and Michelle Bowman, were appointed by Trump. Trump appointed Jerome Powell as the chairman of the Federal Reserve in 2017.
As of Monday, the Board of Governors had six members, including Cook, with one seat vacant following Adriana Kugler’s resignation earlier this month. Trump has nominated Stephen Miran, chairman of the Council of Economic Advisors, to fill Kugler’s place. If Miran’s appointment is confirmed by the Senate and Trump succeeds in removing Cook and appointing her successor, Trump will secure a 4-3 majority on the board.
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UK investment bank Peel Hunt has given some support to under-pressure Chancellor Rachel Reeves over last week’s Budget as it said efforts to boost the London market and invest in UK companies were “positive steps”.
Peel Hunt welcomed moves announced in the Budget, such as the stamp duty exemption for shares bought in newly listed firms on the London market and changes to Isa investing.
It comes as Ms Reeves has been forced to defend herself against claims she misled voters by talking up the scale of the fiscal challenge in the run-up to last week’s Budget, in which she announced £26 billion worth of tax rises.
Peel Hunt said: “Following a prolonged period of pre-Budget speculation, businesses and investors now have greater clarity from which they can start to plan.
“The key measures were generally well received by markets, particularly the creation of additional headroom against the Chancellor’s fiscal rules.
“Initiatives such as a stamp duty holiday on initial public offerings (IPOs) and adjustments to the Isa framework are intended to support UK capital markets and encourage investment in British companies.
“These developments, alongside the Entrepreneurship in the UK paper published simultaneously, represent positive steps toward enhancing the UK’s attractiveness for growth businesses and long-term investors.”
Ms Reeves last week announced a three-year stamp duty holiday on shares bought in new UK flotations as part of a raft of measures to boost investment in UK shares.
She also unveiled a change to the individual savings account (Isa) limit that lowers the cash element to £12,000 with the remaining £8,000 now redirected into stocks and shares.
But the Chancellor also revealed an unexpected increase in dividend tax, rising by 2% for basic and higher rate taxpayers next year, which experts have warned “undermines the drive to increase investing in Britain”.
Peel Hunt said the London IPO market had begun to revive in the autumn, although listings activity remained low during its first half to the end of September.
Firms that have listed in London over recent months include The Beauty Tech Group, small business lender Shawbrook and tinned tuna firm Princes.
Peel Hunt added that deal activity had “continued at pace” throughout its first half, with 60 transactions announced across the market during that time and 10 active bids for FTSE 350 companies, as at the end of September.
Half-year results for Peel Hunt showed pre-tax profits jumped to £11.5 million in the six months to September 30, up from £1.2 million a year earlier, as revenues lifted 38.3%.
Peel Hunt said its workforce has been cut by nearly 10% since the end of March under an ongoing savings drive, with full-year underlying fixed costs down by around £5 million.
Steven Fine, chief executive of Peel Hunt, said: “The second half has started strongly, with the group continuing to play leading roles across both mergers and acquisitions and equity capital markets mandates.”
Business
Gross GST collections for November stand at over Rs 1.70 lakh crore; up 0.7 per cent – The Times of India
GST collections: The Gross Goods and Services Tax (GST) collections for the month of November came in at over Rs 1.70 lakh crore. This is a rise of 0.7%, according to official data.SBI Research in a report in November had estimated that the gross domestic GST collections may come around Rs 1.49 lakh crore for November 25 (returns of October 25 but filed in Nov’25), a YoY growth of 6.8%.“Coupled with Rs 51,000 crore of IGST and cess on Import, the November GST collections thus could cross Rs 2.0 lakh crore, driven by the peak festive season demand led by lower GST rate and increased compliance while most of states experience positive gains,” SBI Research had said.This story is being updated
New Delhi: Several crucial deadlines have been extended in December 2025, including ITR for tax audit cases, ITR filing and PAN and Aadhaar linking. These deadlines will be crucial in ensuring that your financial affairs operate smoothly in the months ahead.
Here is a quick rundown of the important deadlines for December to help you stay compliant and avoid last-minute hassles.
ITR deadline for tax audit cases
The Central Board of Direct Taxes has extended the due date of furnishing of return of income under sub-Section (1) of Section 139 of the Act for the Assessment Year 2025-26 which is October 31, 2025 in the case of assessees referred in clause (a) of Explanation 2 to sub-Section (1) of Section 139 of the Act, to December 10, 2025.
Belated ITR filing deadline
A belated ITR filing happens when an ITR is submitted after the original due date which is permitted by Section 139(4) of the Income Tax Act. Filing a belated return helps you meet your tax obligations, but it involves penalties. You can only file a belated return for FY 2024–25 until December 31, 2025. However, there will be a late fee and interest charged.
PAN and Aadhaar linking deadline
The Income Tax Department has extended the deadline to link their PAN with Aadhaar card to December 31, 2025 for anyone who acquired their PAN using an Aadhaar enrolment ID before October 1, 2024. If you miss this deadline your PAN will become inoperative which will have an impact on your banking transactions, income tax return filing and other financial investments.
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