Former Fed Vice Chair Roger Ferguson Says 'Market Has Conditioned Itself' As Equities Remain Muted Over Trump Ousting Lisa Cook

Former Federal Reserve Vice Chair Roger Ferguson on Tuesday reportedly stated that the muted reaction of U.S. equities following President Donald Trump’s move to oust Fed Governor Lisa Cook is because Wall Street has now “conditioned” itself to these announcements from the President.

In an interview with CNBC, Ferguson highlighted that there is ambiguity around the legality of President Trump's firing of a Federal Reserve governor.

“We’ve seen this president move back and forth quite a bit on a variety of things including tariffs. So I think the market has now conditioned itself to wait for the next issue to drop and then the one after that and then we’ll finally see where this all settles out,” he said in the interview.

Ferguson also underscored in the interview that it’s not clear yet if Cook is guilty of the mortgage fraud that President Trump and Federal Housing Finance Agency Director Bill Pulte have accused her of. He said this matter would eventually go to the courts.

Meanwhile, U.S. equities edged up in Tuesday morning’s trade. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was up 0.05%, while the Invesco QQQ Trust (QQQ) gained 0.17%. Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘bullish’ territory.

The iShares 7-10 Year Treasury Bond ETF (IEF) was up 0.09% at the time of writing.

Also See: Ed Yardeni Says Fed Should Not Cut Interest Rates In September To Maintain Its Credibility On Inflation: 'A Lot Of People Expected...'

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