 "US court blocks Trump bid to fire Federal Reserve Governor Lisa Cook")
A federal appeals court in the US has rejected President Donald Trump’s bid to remove Federal Reserve Governor Lisa Cook while her lawsuit contesting the dismissal is underway.
The 2-1 ruling, announced on Monday by a panel of the DC Circuit Court of Appeals, allowed Cook to continue working for now and likely participate in the Federal Reserve’s crucial meeting that begins Tuesday morning, Bloomberg reported. The ruling also leaves Trump with only a few hours to ask the US Supreme Court to oust her, after he fired her last month over allegations of mortgage fraud.
Trump fires Biden-appointed Lisa Cook over fraud allegations
Citing Constitutional authority, Trump took to his private social media platform, Truth Social, to announce the ousting of Lisa Cook in August. In a letter to Cook, Trump wrote, “Pursuant to my authority under Article II of the Constitution of the United States and the Federal Reserve Act of 1913, as amended, you are hereby removed from your position on the Board of Governors of the Federal Reserve, effective immediately.”
According to the Trump administration, Cook falsified bank records to obtain favourable mortgage terms. Trump’s decision came after Bill Pulte, a Trump appointee and the Director of the Federal Housing Finance Agency, said that in 2021 Cook claimed two primary residences — one in Ann Arbor, Michigan, and the other in Atlanta — to benefit from better interest rates.
Cook refuses allegations, files lawsuit against Trump
Responding to Trump’s decision, Cook stated that she would not resign and subsequently filed a lawsuit against Trump. In an emailed statement, she wrote, “President Trump purported to fire me for cause when no cause exists under the law, and he has no authority to do so.”
Cook’s lawsuit has emerged as a major flashpoint between the White House and the Federal Reserve, which has so far resisted Trump’s pressure to lower interest rates.
Court rulings
Earlier on September 9, US District Judge Jia Cobb ruled that Cook can continue to be on the job as her case proceeds, adding that the US President’s attempt to oust her likely violated the law.
The appeals court ruled that the district judge was correct to note that Trump possibly violated Cook’s due process rights by attempting to fire her via a social media post.
“In this court, the government does not dispute that it failed to provide Cook even minimal process — that is, notice of the allegation against her and a meaningful opportunity to respond — before she was purportedly removed,” DC Circuit Judges J Michelle Childs and Bradley Garcia noted.
US Senate confirms Stephen Miran to Fed board
According to a Politico report, the US Senate on Monday confirmed that White House chief economist Stephen Miran, a Trump adviser, to the Federal Reserve board. The move will allow Miran to participate in the interest rate-setting meeting scheduled for Tuesday.
Miran’s appointment to the Federal Reserve board is Trump’s first tangible imprint on the institution in his second term. It could also grant him unusually direct influence over a central bank member, despite the Fed’s design to remain insulated from short-term political pressures.