US President Donald Trump has renewed his effort to remove Federal Reserve Governor Lisa Cook, reigniting a major legal and political battle over presidential power and the independence of America's central bank.

The Trump administration is seeking Cook's removal over allegations involving mortgage documents from 2021, before she joined the Federal Reserve in 2022. Trump has accused Cook of mortgage fraud, while Cook denies wrongdoing and her lawyers have called the allegations baseless and politically motivated.

The Supreme Court previously ruled 5–4 that Cook could remain in her position while she challenges her removal, finding that she had not been given the required procedural protections. However, the ruling did not permanently prevent Trump from attempting to remove her again.

Chief Justice John Roberts indicated that the president could pursue removal if Cook received proper notice and an opportunity to respond. Cook's deadline to respond is August 26.

Trump Renews Effort to Fire Fed Governor Lisa Cook | Battle Over Federal Reserve Independence

The Federal Reserve's policy setting committee meets this week at a turbulent time: one day after voters head to the polls in the deeply uncertain US presidential election.

But the body pointedly keeps itself out of politics, and analysts expect the policy-setting Federal Open Markets Committee (FOMC) will do little to rock the boat at its two-day meeting beginning Wednesday.

The Fed already zeroed out borrowing rates and offered massive credit facilities amid the coronavirus downturn, recently expanding them to reach more firms and nonprofit organizations.

"I think November's meeting is too soon for there to be a dramatic break," said David Wilcox, a former top economist at the Fed who is now with the Peterson Institute for International Economics.&nbsp;

"This is a sort of a placeholder meeting while they wait for those situations to clarify."

Also read|&nbsp;<a href="https://www.wionews.com/world/on-final-weekend-before-nov-3-vote-trump-and-biden-press-closing-arguments-339318" hreflang="en">On final weekend before Nov 3 vote, Trump and Biden press closing arguments</a>

Political uncertainty ahead of the vote comes amid continued worries about the world's largest economy amid the coronavirus crisis.

While the Fed moved quickly with new credit lines and the rate cut as the pandemic arrived, the initial momentum to get aid bills through Congress has petered out despite increasingly desperate pleas for more aid from Fed Chair Jerome Powell.

John Mousseau, president and chief executive officer at Cumberland Advisors, said the central bank is likely to again encourage lawmakers to continue the push for new stimulus after the election in the final weeks before a new Congress is installed in January.

"The Fed has done their job," he said.&nbsp;

And as they call for more aid next week "the message will be delivered to a lame duck Congress that might actually act on what the Fed's doing."

No rate change

The FOMC meeting lacks any suspense over the benchmark lending rate after the central bank in August debuted a new policy keeping interest rates lower for longer to wait to inflation to rise and maximize employment.

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The coronavirus pandemic in the United States caused tens of millions of layoffs as well as a historic contraction in GDP, but recent data shows a recovery is underway.

GDP growth rebounded by 33.1 per cent annualized in the third quarter from its 31.4 per cent contraction in the quarter before, according to Commerce Department data.

But weekly applications for jobless benefits remain higher than the worst of the 2008-2010 global financial crisis, and nearly 23 million people continue to receive some form of government unemployment support.

The $2.2 trillion CARES Act stimulus package passed in March has helped spur rehiring and supported spending, but key provisions are expired and fears of a renewed economic malaise have increased.

Extending that aid is the job of Congress, but at the Fed, "They've got their accelerator foot down hard on the pedal... to sustain the economy as best as they can, using the tools at their disposal," Wilcox said

Swirling uncertainty

It's unclear if there how much more the Fed is willing or able to do.

Mousseau said they could begin buying different types of debt to ease the pressure on entities like local governments, particularly if no stimulus package is passed.

But that opens them up to thorny questions over whose debt to buy, and accusations of political preference could follow, the last thing the central bank desires.

"I think that's one reason why the Fed has passed some of this back of Congress. Rightfully so," Mousseau said.

It is a given that the FOMC meeting will be overshadowed by the election contest between President Donald Trump and his challenger Joe Biden set for the day before the meeting begins.

Powell is expected to steer well clear of political questions in his press conference Thursday.

"They're always fighting the fight against being put in a political position," Mousseau said. "To its credit, that's one thing Powell has stood up against. The Fed can't be a political vehicle."

The Federal Reserve's policy setting committee meets this week at a turbulent time: one day after voters head to the polls in the deeply uncertain US presidential election.

The Federal Reserve's policy setting committee meets this week at a turbulent time: one day after voters head to the polls in the deeply uncertain US presidential election. But the body pointedly keeps itself out of politics, and analysts expect the policy-setting Federal Open Markets Committee (FOMC) will do little to rock the boat at its two-day meeting beginning Wednesday. The Fed already zeroed out borrowing rates and offered massive credit facilities amid the coronavirus downturn, recently expanding them to reach more firms and nonprofit organizations. "I think November's meeting is too soon for there to be a dramatic break," said David Wilcox, a former top economist at the Fed who is now with the Peterson Institute for International Economics. "This is a sort of a placeholder meeting while they wait for those situations to clarify." Also read| On final weekend before Nov 3 vote, Trump and Biden press closing arguments Political uncertainty ahead of the vote comes amid continued worries about the world's largest economy amid the coronavirus crisis. While the Fed moved quickly with new credit lines and the rate cut as the pandemic arrived, the initial momentum to get aid bills through Congress has petered out despite increasingly desperate pleas for more aid from Fed Chair Jerome Powell. John Mousseau, president and chief executive officer at Cumberland Advisors, said the central bank is likely to again encourage lawmakers to continue the push for new stimulus after the election in the final weeks before a new Congress is installed in January. "The Fed has done their job," he said. And as they call for more aid next week "the message will be delivered to a lame duck Congress that might actually act on what the Fed's doing." No rate change The FOMC meeting lacks any suspense over the benchmark lending rate after the central bank in August debuted a new policy keeping interest rates lower for longer to wait to inflation to rise and maximize employment. Also read| Trump announces executive order to protect fracking at US election rally The coronavirus pandemic in the United States caused tens of millions of layoffs as well as a historic contraction in GDP, but recent data shows a recovery is underway. GDP growth rebounded by 33.1 per cent annualized in the third quarter from its 31.4 per cent contraction in the quarter before, according to Commerce Department data. But weekly applications for jobless benefits remain higher than the worst of the 2008-2010 global financial crisis, and nearly 23 million people continue to receive some form of government unemployment support. The $2.2 trillion CARES Act stimulus package passed in March has helped spur rehiring and supported spending, but key provisions are expired and fears of a renewed economic malaise have increased. Extending that aid is the job of Congress, but at the Fed, "They've got their accelerator foot down hard on the pedal... to sustain the economy as best as they can, using the tools at their disposal," Wilcox said Swirling uncertainty It's unclear if there how much more the Fed is willing or able to do. Mousseau said they could begin buying different types of debt to ease the pressure on entities like local governments, particularly if no stimulus package is passed. But that opens them up to thorny questions over whose debt to buy, and accusations of political preference could follow, the last thing the central bank desires. "I think that's one reason why the Fed has passed some of this back of Congress. Rightfully so," Mousseau said. It is a given that the FOMC meeting will be overshadowed by the election contest between President Donald Trump and his challenger Joe Biden set for the day before the meeting begins. Powell is expected to steer well clear of political questions in his press conference Thursday. "They're always fighting the fight against being put in a political position," Mousseau said. "To its credit, that's one thing Powell has stood up against. The Fed can't be a political vehicle."

Fed in holding pattern amid tense US election

Asian stocks slipped on Tuesday ahead of the US Federal Reserve&#39;s two-day meeting that begins later in the day&nbsp;amid growing worries that this month&#39;s referendum in Britain could see it exit the European Union. 
 
The Pound and Euro have suffered in recent sessions as economists fear a so-called Brexit would tip Europe back into recession. Voters appear divided ahead of the June 23-referendum, with the &quot;Out&quot; campaign widening its lead over the &quot;In&quot; camp, according to two opinion polls published by ICM on Monday. 
 
MSCI&#39;s broadest index of Asia-Pacific shares outside Japan was down 0.6 per cent&nbsp;after Wall Street lost ground for the third straight session. 
 
Japan&#39;s Nikkei stock index skidded 1.5 per cent after tumbling 3.5 per cent on Monday. 
 
&quot;Short-term hedge funds have started betting on Brexit&nbsp;and futures players will likely dominate the market&#39;s move today,&quot; said Norihiro Fujito, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities. 
 
The benchmark 10-year Japanese government bond yield fell to as low as minus 0.175 per cent, a fresh record, before edging back to minus 0.170 per cent. 
 
Uncertainty over this week&#39;s Federal Reserve policy meeting has weighed on markets, even while the US central bank is widely expected to leave rates unchanged after the much weaker-than-expected May non-farm payrolls report. 
 
&quot;The committee was actively preparing markets for a June-July rate hike until the release of the May employment report and is unlikely to give up its tightening bias absent additional information that labour markets are weakening,&quot; analysts at Barclays wrote. 
 
&quot;Nevertheless, the abrupt slowing in employment and falling long-run inflation expectations should raise alarm bells, and risk management concerns suggest delaying action until after the outcome of the UK referendum,&quot; they said. 
 
The Bank of England, Swiss National Bank and the Bank of Japan will also meet this week, and are similarly expected to stand pat on policy with the Brexit vote looming. 
 
The dollar index, which tracks the greenback against a basket of six rival currencies, edged up slightly to 94.395, moving back toward the overnight high of 94.750. That was its highest since the downbeat US jobs report toppled the dollar on June 3. 
 
The perceived safe-haven Yen has benefited from investors&#39; risk aversion. The dollar was down 0.2 per cent at 105.99 Yen, moving back toward Monday&#39;s low of 105.735, its weakest level since early May. 
 
Japanese Finance Minister Taro Aso issued a fresh warning against renewed strength in the Yen, saying that he would &quot;firmly respond&quot; if rapid and speculative moves persisted in the foreign exchange market. 
 
The Euro was slightly lower at $1.1290. Against the Yen, it skidded 0.3 per cent to 119.69, moving back toward a more than three-year low plumbed in the previous session. 
 
Sterling also notched a three-year low against the Yen on Monday, and was last down 0.8 per cent at 150.35 Yen. Against the Dollar, the Pound dropped 0.6 per cent to $1.4180. 
 
Crude oil prices continued to slip, pressured by the strong US dollar and worrying economic prospects in Europe and Asia, though losses were contained by ongoing supply outages in Nigeria. 
 
Brent was down 1 per cent at $49.84 per barrel, while US crude shed 1.1 per cent to $48.34.

The Pound and Euro have both suffered over fears that UK leaving the EU will cause another European recession

Asian stocks slipped on Tuesday ahead of the US Federal Reserve's two-day meeting that begins later in the day amid growing worries that this month's referendum in Britain could see it exit the European Union. The Pound and Euro have suffered in recent sessions as economists fear a so-called Brexit would tip Europe back into recession. Voters appear divided ahead of the June 23-referendum, with the "Out" campaign widening its lead over the "In" camp, according to two opinion polls published by ICM on Monday. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.6 per cent after Wall Street lost ground for the third straight session. Japan's Nikkei stock index skidded 1.5 per cent after tumbling 3.5 per cent on Monday. "Short-term hedge funds have started betting on Brexit and futures players will likely dominate the market's move today," said Norihiro Fujito, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities. The benchmark 10-year Japanese government bond yield fell to as low as minus 0.175 per cent, a fresh record, before edging back to minus 0.170 per cent. Uncertainty over this week's Federal Reserve policy meeting has weighed on markets, even while the US central bank is widely expected to leave rates unchanged after the much weaker-than-expected May non-farm payrolls report. "The committee was actively preparing markets for a June-July rate hike until the release of the May employment report and is unlikely to give up its tightening bias absent additional information that labour markets are weakening," analysts at Barclays wrote. "Nevertheless, the abrupt slowing in employment and falling long-run inflation expectations should raise alarm bells, and risk management concerns suggest delaying action until after the outcome of the UK referendum," they said. The Bank of England, Swiss National Bank and the Bank of Japan will also meet this week, and are similarly expected to stand pat on policy with the Brexit vote looming. The dollar index, which tracks the greenback against a basket of six rival currencies, edged up slightly to 94.395, moving back toward the overnight high of 94.750. That was its highest since the downbeat US jobs report toppled the dollar on June 3. The perceived safe-haven Yen has benefited from investors' risk aversion. The dollar was down 0.2 per cent at 105.99 Yen, moving back toward Monday's low of 105.735, its weakest level since early May. Japanese Finance Minister Taro Aso issued a fresh warning against renewed strength in the Yen, saying that he would "firmly respond" if rapid and speculative moves persisted in the foreign exchange market. The Euro was slightly lower at $1.1290. Against the Yen, it skidded 0.3 per cent to 119.69, moving back toward a more than three-year low plumbed in the previous session. Sterling also notched a three-year low against the Yen on Monday, and was last down 0.8 per cent at 150.35 Yen. Against the Dollar, the Pound dropped 0.6 per cent to $1.4180. Crude oil prices continued to slip, pressured by the strong US dollar and worrying economic prospects in Europe and Asia, though losses were contained by ongoing supply outages in Nigeria. Brent was down 1 per cent at $49.84 per barrel, while US crude shed 1.1 per cent to $48.34.

Asian shares slip as Brexit vote looms

Gold inched down on Tuesday as investors waited for cues from a two-day US Federal Reserve meeting beginning later in the day and a June 23-referendum that will decide whether Britain will exit the European Union. 
 
Spot gold was down 0.4 per cent at $1,279.16 an ounce as of 0648 GMT, but has gained more than 5 per cent this month, hitting a peak of $1,287 on Monday, its highest since May 16. 
 
US gold fell 0.4 per cent to $1,282.30. 
 
&quot;I think investors have decided to take profits and some of them are staying on the sidelines before taking a decision on what to do next until the Fed makes an announcement,&quot; said Brian Lan, managing director at Singapore-based gold dealer GoldSilver Central. 
 
Bullion, which is often perceived as a hedge against economic and financial uncertainty, has been driven by rising investor risk aversion before key central bank meetings this week. 
 
Apart from the Fed, the Bank of England, Swiss National Bank and the Bank of Japan will meet this week, and are expected to hold monetary policies steady against a backdrop of caution about the global economic outlook. 
 
The safe-haven appeal of gold, which is near a four-week high hit in the previous session, could get a further boost if a vote by Britain to leave the 28-member group, dubbed &quot;Brexit&quot;, pushes Europe back into a recession. 
 
The British pound remained fragile near a two-month low against the dollar, while Asian stocks slipped on Tuesday on concerns ahead of the referendum. 
 
Britain&#39;s &quot;Out&quot; campaign widened its lead over the &quot;In&quot; camp ahead of the referendum according to two opinion polls published by ICM on Monday. 
 
&quot;We think that the risk of Britain leaving has now increased substantially and the Fed will therefore signal its willingness in no uncertain terms to &#39;stay the course&#39; in light of this potential &#39;Black Swan&#39; event,&quot; INTL FCStone analyst Edward Meir said in a note. 
 
&quot;This will likely enable gold to push even higher over the next few days, at least until the polls start to swing the other way.&quot; 
 
Meanwhile, Hong Kong Exchanges and Clearing Ltd is aiming to launch its planned physically-delivered gold futures contract in September, said&nbsp;its head on Tuesday. 
 
Holdings in SPDR Gold Trust, the world&#39;s largest gold-backed exchange-traded fund, rose 0.27 per cent to 896.30 tonnes on Monday, the highest since October 2013. 
 
Spot silver fell 0.8 percent to $17.29 per ounce, after touching a one-month high of $17.45 on Monday.

Gold is likely to get a further boost if a vote by Britain to leave the 28-member group dubbed "Brexit," pushes Europe back into a recession

Gold inched down on Tuesday as investors waited for cues from a two-day US Federal Reserve meeting beginning later in the day and a June 23-referendum that will decide whether Britain will exit the European Union. Spot gold was down 0.4 per cent at $1,279.16 an ounce as of 0648 GMT, but has gained more than 5 per cent this month, hitting a peak of $1,287 on Monday, its highest since May 16. US gold fell 0.4 per cent to $1,282.30. "I think investors have decided to take profits and some of them are staying on the sidelines before taking a decision on what to do next until the Fed makes an announcement," said Brian Lan, managing director at Singapore-based gold dealer GoldSilver Central. Bullion, which is often perceived as a hedge against economic and financial uncertainty, has been driven by rising investor risk aversion before key central bank meetings this week. Apart from the Fed, the Bank of England, Swiss National Bank and the Bank of Japan will meet this week, and are expected to hold monetary policies steady against a backdrop of caution about the global economic outlook. The safe-haven appeal of gold, which is near a four-week high hit in the previous session, could get a further boost if a vote by Britain to leave the 28-member group, dubbed "Brexit", pushes Europe back into a recession. The British pound remained fragile near a two-month low against the dollar, while Asian stocks slipped on Tuesday on concerns ahead of the referendum. Britain's "Out" campaign widened its lead over the "In" camp ahead of the referendum according to two opinion polls published by ICM on Monday. "We think that the risk of Britain leaving has now increased substantially and the Fed will therefore signal its willingness in no uncertain terms to 'stay the course' in light of this potential 'Black Swan' event," INTL FCStone analyst Edward Meir said in a note. "This will likely enable gold to push even higher over the next few days, at least until the polls start to swing the other way." Meanwhile, Hong Kong Exchanges and Clearing Ltd is aiming to launch its planned physically-delivered gold futures contract in September, said its head on Tuesday. Holdings in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.27 per cent to 896.30 tonnes on Monday, the highest since October 2013. Spot silver fell 0.8 percent to $17.29 per ounce, after touching a one-month high of $17.45 on Monday.

Gold dips, but lingers near four-week high ahead of Fed meeting