A federal lawsuit filed in D.C. court seeks a preliminary injunction to allow Federal Reserve Governor Cook to remain while challenging President Trump's removal order. The Federal Reserve and Chair Jerome Powell are named as defendants because of the central bank's potential role in carrying out the firing demand. Counsel Abbe Lowell contends that allegations by FHFA director Bill Pulte about Cook's primary-residence listings are unsubstantiated and predate her Senate confirmation. The complaint centers on the Federal Reserve Act clause limiting removal to 'for cause' and asks courts to define that standard. Cook, appointed in 2022, refused to resign.
unsubstantiated allegations about conduct that predates her Senate confirmation, and Governor Cook has never been given an opportunity to address them.
Trump's conception of 'cause' has no limiting principle; it would allow him to remove any Federal Reserve Board member with whom he disagrees about policy based on chalked up allegations,
sufficient cause to remove you from your position.
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