That effort took a major hit this week when a judge granted an injunction allowing Cook to remain in her post. U.S. District Judge Jia Cobb wrote in a ruling Tuesday that removal of a Federal Reserve Governor extends only to concerns about the Board member's ability to effectively and faithfully execute their statutory duties, in light of events that have occurred while they are in office.
To be clear, no one disputes that defendants have significant discretion in how to spend the funds at issue, and the court is not directing defendants to make payments to any particular recipients, wrote Ali, who was nominated by Joe Biden. But defendants do not have any discretion as to whether to spend the funds. Ali said Congress would have to approve the rescission proposal for the administration to withhold the money.
