US EditionFED GOVERNOR SAYS SHE WON'T QUIT
Lisa Cook challenges Trump's firing attempt citing legal protections for Federal Reserve governors serving fixed terms; courts have yet to rule on this unprecedented case.
- On Monday, President Donald Trump posted a letter on Truth Social saying he would remove Federal Reserve Governor Lisa Cook effective immediately over mortgage-fraud allegations, an unprecedented action in the Fed's 112-year history.
- Earlier this year, President Donald Trump appointed Christopher Waller and Michelle Bowman and nominated Steven Miran to replace Adriana Kugler; if confirmed, Trump could hold a 4-3 majority on the Fed board amid pressure to cut the interest rate 4.3%.
- Under the Federal Reserve Act, governors may be removed 'for cause'; the Federal Reserve said it will "abide by any court decision" and defended long terms as safeguards, while Lev Menand noted, `And that argument's worked in a few other cases so far this year`.
- Cook's legal team said it will sue to block her removal and seek an injunction to continue as a governor, with her lawyer announcing legal action on Tuesday.
- If upheld, the case may reshape Federal Reserve independence and affect mortgage, auto, and business loan costs, while this year's U.S. Supreme Court trend toward presidential removal power adds uncertainty.
73 Articles
73 Articles
Fired Federal Reserve Governor Lisa Cook Argues She's the "First Black Woman to Sit on the Federal Reserve's Board" - Lawsuit Assigned to Biden Judge
Lisa Cook filed a lawsuit after President Trump fired her as Federal Reserve Governor – and the lawsuit was assigned to a Biden-appointed judge.
Missouri Independent
Fed Governor Cook sues Trump, blasts attack on central bank’s autonomy
Federal Reserve Chair Jerome Powell administers the oath of office to Lisa Cook to serve as a member of the Board of Governors at the Federal Reserve System during a ceremony at the William McChesney Martin Jr. Building of the Federal Reserve May 23, 2022, in Washington, D.C. (Photo by Drew Angerer/Getty Images)WASHINGTON — Lisa Cook, a Federal Reserve governor, sued President Donald Trump Thursday, calling his move to fire her an “unprecedented…
Fed official sues Trump for trying to fire her
By CHRISTOPHER RUGABER, AP Economics WriterWASHINGTON (AP) — Federal Reserve Governor Lisa Cook has sued the Trump administration in an effort to overturn the president’s attempt to fire her, launching an unprecedented legal battle that could significantly reshape the Fed’s longstanding political independence.
The goal of the leader is to counter "the unprecedented and illegal attempt of President Trump (...) which, if successful, would constitute a precedent" in the Fed's history.
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