Case – Lisa Cook, a member of the Federal Reserve Management Board, listens to the Open Open Council meeting at the Federal Reserve, 2025. June 25, Washington. (AP photo/Mark Schiefelbein, file) Via Associated Press
August 28 (Reuters) – Governor of Federal Reserve Lisa Cook On Thursday, a lawsuit stating that US President Donald Trump has no power to remove it from office by establishing a legal struggle that could reset the long -established rules for the U.S. Central Bank’s independence.
CookThe court’s lawsuit alleges that the Republican Trump violated the federal law, allowing the President to remove the Fed Governor only on August 25. He took an unprecedented step by announcing that he would forgive her. The Republican President accused Cook In 2021, one year before the entry into the management body of the FED, a mortgage fraud.
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The case is probably aimed at the Supreme Court, where the conservative majority, at least in the preliminary, allowed the Trump to dismiss officials from other agencies, but recently reported that the Fed may be a rare exception directly to the president.
Concerns about Fed’s independence from the White House in determining monetary policy can have the impact of pulsation throughout the world economy. The US dollar stumbled against other major currencies after the Trump first said he would remove Cook;
A representative of the Fed said Tuesday that the Fed would comply with any judgment before the action.
Cook 2022 Former Democratic President Joe Biden was appointed to the Fed, and is the first black woman serving the Central Bank’s governing body.
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Earlier this year, Trump also dismissed Gwynne Wilcox, the first black woman sitting in the National Labor Relations Board, which is dealing with private sector labor disputes. The Trump also dismissed many officers from other agencies who have long been treated as independent of the White House.
For a reason
The Fed law does not define the “reasons” and does not set any standards or procedures. No president had ever lifted a member of the Fed Board and the laws had never been tried in court.
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Several federal laws that require the president to have a reason before removing members of other agencies, argues that the cause may be duty, inappropriate behavior and ineffectiveness. These laws may be a guide to the courts to determine whether Trump was supposed to cause a fire Cook;
Questions about CookThe mortgage was first raised by William’s panel, D. Trump’s departure, who is the director of the Federal Housing Finance Agency. In the “Party”, he handed over this issue to the Attorney General Pamela Bondi’s investigation.
Cook In 2021, when she was an academic, she took the mortgage in Michigan and Georgia. Official 2024 The form of financial disclosure lists three mortgages Cookwith two specified personal residences. Loans for primary residences may be less than investment properties of mortgages that banks consider to be risky.
Some experts questioned whether the operations that took place before CookThe appointment to the Fed and was in a public recording when it was checked and approved by the US Senate may mean the right reason to eliminate it.
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Trump’s administration could also argue that the provision of Fed managers to any protection against removal violates the extensive constitutional power of the President to control the executive power, as it filed for actions filed by other former officials.
Short on August 25 Cook He accused her of engaging in “fraudulent and criminal behavior in the financial case” and said she did not trust her honesty.
Cook At the time, the statement states that “there is no law and (short) there is no authority to remove it from work. Her lawyers said Trump’s requirements lack the right process, grounds or legal authority. ‘
CookThe departure would allow Trump to name your fourth selection to the Fed Seven Members Board.
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The President has repeatedly kidnapped Fed’s chairman Jerome Powell for not providing interest rates and due to the alleged misconduct of the renovation project worth several billion dollars, although he suspended the threats to remove Powell against him, as the Central Bank’s Chief ends in May.
Trump’s administration was also directed at political opponents, including US Senator Adam Schiff and New York Prosecutor General Letitia James, with similar accusations of mortgage fraud. Schiff and James denied illegal actions.
(Report Daniel Wiesner in Albani, New York; Edited by Alexia Garramphalvi, Rosalba O’Brien and Paul Simao)
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