US EditionFed says it will abide by court ruling in Trump, Cook dispute over firing
The Federal Reserve emphasized governors serve fixed terms removable only for cause and will comply with the court's ruling amid a legal challenge by Governor Lisa Cook.
- The Federal Reserve on Tuesday issued a statement saying it will abide by any court decision on President Donald Trump's removal of Fed Governor Lisa Cook and will continue its duties as established by law.
- President Donald Trump announced Monday he was removing Fed Governor Lisa Cook over mortgage fraud allegations, despite Treasury Secretary Scott Bessent urging an internal review before removal.
- Under the Federal Reserve Act, the Fed stressed governors serve long, fixed terms and may be removed only `for cause', while White House spokesman Kush Desai said President Trump `exercised his lawful authority' in Cook's removal.
- Cook’s legal team said they will challenge the firing in court and not resign, while economists warned this risks the Fed’s credibility; Komal Sri-Kumar said, `We are moving toward stagflation, a situation when you have a recession, at the same time, inflation picking up significantly`.
- Traders now price in over 87% chance of a 25-basis-point cut as markets await Q2 GDP data on Thursday and the PCE Price Index on Friday.
20 Articles
20 Articles
Will SCOTUS let Trump fire Lisa Cook from the Federal Reserve?
President Donald Trump has purported to fire Lisa Cook from her position as a member of the Federal Reserve's Board of Governors. Can he lawfully do that? Or, perhaps the better question to ask: Will the U.S. Supreme Court let him do that? Before tackling those questions, let's review what the Supreme Court has previously said about the president's power to remove federal agency heads such as Cook. In Humphrey's Executor v. United States (1935),…
The U.S. president tried to remove the first black economist from the Federal Reserve Board of Governors, appointed by Joe Biden, to increase his grip on the seven members.
Fed Governor’s Firing Resurfaces Legal Questions Surrounding Presidential Power
Federal Reserve Governor Lisa Cook is expected to sue President Donald Trump over her recent firing, refocusing attention on questions about the extent of presidential power and the protections Congress has instituted for particular federal entities. As with other agencies, Congress passed a law limiting the reasons for which presidents could remove members of the Federal Reserve. In Cook’s case, the Federal Reserve Act allows presidents to remo…
'Stinks to high heaven': Legal expert warns Trump ouster could blow up in his face
A prominent lawyer revealed on Wednesday that President Donald Trump's recent stunt could backfire on him. Trump recently posted a letter on Truth Social where he said he was removing Federal Reserve governor Lisa Cook from her job "for cause." Cook and her attorneys have said they will challenge her termination in court and that she is not resigning. Norm Eisen, an attorney and former diplomat, argued on a recent episode of progressive YouTuber…
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