Trump takes bid to fire Fed governor Cook to the US Supreme Court
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Federal Reserve governor Lisa Cook has filed a lawsuit challenging US President Donald Trump’s bid to fire her from the Federal Reserve Board.
PHOTO: REUTERS
Follow topic:
- Trump seeks Supreme Court approval to fire Fed governor Lisa Cook over alleged mortgage fraud, despite her denials and no charges.
- The Solicitor-General argues Cook is "unfit" due to fraud allegations, claiming lower courts improperly blocked Trump's removal authority.
- Cook, Biden's appointee and the first black woman on the Fed board, calls Trump's action "unprecedented and illegal", challenging it in court.
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WASHINGTON – US President Donald Trump on Sept 18 took his bid to fire central bank governor Lisa Cook to the Supreme Court.
Mr Trump has sought to oust Dr Cook from the Federal Reserve Board over allegations of mortgage fraud, but an appeals court ruled she could remain in her role
The ruling allowed Dr Cook to participate in a two-day meeting this week during which the Federal Reserve lowered interest rates
In a filing with the Supreme Court, Solicitor-General John Sauer asked that Mr Trump be allowed to fire Dr Cook immediately.
Lower court rulings allowing her to remain in her post were “improper judicial interference with the President’s removal authority”, Mr Sauer said.
Federal Reserve governors can be removed only “for cause” and the Solicitor-General said Mr Trump had determined that the mortgage fraud allegations make Dr Cook “unfit to continue serving on the Federal Reserve Board”.
Among the alleged false statements attributed to her, she is accused of claiming two primary residences, one in Michigan and another in Georgia.
Dr Cook, who was appointed by Democratic then President Joe Biden and is the first black woman to serve
She filed a lawsuit challenging Mr Trump’s bid
The legal dispute marks the latest test of presidential powers under Mr Trump, as the 79-year-old Republican moves forcefully to exert executive authority over all of government.
By removing Dr Cook, Mr Trump could add another voice to the Fed’s board to try to sway its decisions on interest rates.
The Supreme Court’s conservative majority recently allowed Mr Trump to fire members of other independent government boards, but it created a potential carve-out for the Fed in its ruling. AFP
