The case could ultimately reach the Supreme Court as Cook and Trump are discussing the extent of the president’s authority to remove staff from an independent Fed committee.
Vice President Vance denies Trump’s enemy list in an exclusive interview
Vice President JD Vance said in an exclusive interview that President Donald Trump focuses on law enforcement rather than political retaliation.
- Federal Reserve Governor Lisa Cook, whom Trump said was fired, filed a federal lawsuit to combat her removal.
- The case could ultimately reach the Supreme Court as Cook and Trump discuss the president’s authority to remove members from the independent Federal Reserve board.
WASHINGTON – Federal Reserve President Donald Trump, Lisa Cook, has said he has filed a federal lawsuit claiming he was fired and the president has not had the authority to take her into office.
An unprecedented legal battle threatens to ultimately reach the Supreme Court as the conflict seeks to resolve how much power the president has over the so-called Independence Commission.
When Congress created the Fed in 1913, lawmakers said officials could only be ruled out because of “cause.” This means a valid reason. The Supreme Court said this would give Fed officials their own protection from removal.
“This incident will challenge President Trump’s unprecedented and illegal attempts and will be the first in the history of the board if allowed,” Cook’s lawsuit said. “The president’s actions violate Governor Cook’s Fifth Amendment legitimate process rights and her “right to statutory notice and hearing under the Federal Reserve Act.”
But Trump argues that Cook’s “potentially criminal” lawsuit fills out the mortgage document and is sufficient to help him fire her. Trump also claims he has the power to fire someone in the administrative department.
Trump’s appointee William Porto, director of the Federal Housing Finance Agency, has filed allegations that he filled out his homes in Michigan and Georgia in mortgage documents claiming her “major residences.” Pulte introduced the issue to Attorney General Pamela Bondi for an investigation.
However, Cook has not been criminally charged. Legal experts said it is not clear if she could remove it because of the “cause” if she had no chance to respond to the allegations against her.
Eliminating cooks could undermine the Fed’s confidence in independence, setting interest rates based on economic goals. The conflict has repeatedly led to Trump’s complaints and the Fed should cut interest rates to promote housing and economic growth. The US dollar stumbled against other major currencies after Trump said he would remove the cook.
Vice President JD Vance defended Trump’s decision in an exclusive interview with USA Today on August 27th.
On August 26, the Fed issued a statement that the agency would comply with the court’s decision.
