Federal Reserve Governor Lisa Cook asked a court for an emergency temporary restraining order to block President Trump from removing her based on mortgage fraud allegations. The legal hearing centered on what legally constitutes "cause" to remove a Fed governor. The allegations were made by Bill Pulte, a Trump appointee, and remain unproven. Justice Department counsel said Cook had not explained questionable mortgage documents or defended against the allegations. If allowed, the firing could weaken the Fed's 112-year tradition of independence and could prompt appeals likely to reach the U.S. Supreme Court.
A case that could provide the Trump administration with new and expansive power over the traditionally independent Federal Reserve focused Friday on what would constitute "cause" to remove a high-ranking official at the nation's central bank. Federal Reserve Governor Lisa Cook has requested an emergency injunction-in the form of a temporary restraining order -to block President Donald Trump's attempt to fire her over allegations that she committed mortgage fraud when she purchased a home and condo in 2021. She was appointed to the Fed's board by former president Joe Biden in 2022.
If her firing is allowed to stand, it would likely erode the Fed's longstanding independence from day-to-day politics. No president has ever fired a Fed governor in the agency's 112-year history. Economists broadly support Fed independence because it makes it easier for the central bank to take unpopular steps such as raising interest rates to combat inflation.
"He's already said he wants a majority (on the Fed board). He's bragged that he's going to get it."
Collection
[
|
...
]