Court Blocks Trump from Dismissing Fed Governor
(MENAFN) A U.S. appellate court determined on Monday that President Donald Trump is not permitted to dismiss Federal Reserve Governor Lisa Cook immediately before the central bank’s crucial policy gathering that will decide whether to reduce interest rates.
The ruling from the U.S. Court of Appeals for the District of Columbia Circuit ensures that Cook will take part in the Fed’s significant two-day policy session starting Tuesday morning.
Trump declared on Aug. 25 that he had removed Cook over claims of a mortgage fraud. Cook, the first Black woman to hold a position as a governor on the Federal Reserve Board, swiftly initiated legal action challenging her termination.
Last Thursday, the Trump administration submitted an appeal seeking to pause the lower court’s ruling that had permitted Cook to continue serving at the Fed until the meeting.
Bill Pulte, head of the Federal Housing Finance Agency, alleged Cook was tied to mortgage fraud. This, according to Trump, was the justification for his late August move.
Cook has rejected all accusations, while her attorneys argue that Trump is merely using Pulte’s claims as an excuse, suggesting the president’s actual motive is to pressure the Fed into lowering interest rates by threatening her removal.
The U.S. president has frequently faulted Fed Chair Jerome Powell for resisting cuts to borrowing costs and had at one stage even considered dismissing him.
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