Trump petitions the Supreme Court for an immediate decree to displace Lisa Cook from the Federal Reserve board
In a dramatic turn of events, the Trump administration has asked the Supreme Court to intervene in the ongoing legal case regarding the removal of Federal Reserve Governor Lisa Cook.
President Joe Biden appointed Cook to the Fed's board in 2021, but her tenure has been threatened since August, when Trump sought to fire her. A federal judge ruled last week that the removal was likely illegal, reinstating Cook to her position.
The administration's actions suggest an attempt to remove Cook from the Federal Reserve's board of governors without due process and cause. The federal appeals court in Washington rejected the administration's request to let Cook's firing proceed by a 2-1 vote.
Trump has accused Cook of mortgage fraud, alleging that she claimed two properties, in Michigan and Georgia, as "primary residences" before joining the board. However, documents obtained by The Associated Press appear to undercut the administration's claims of fraud, as Cook did specify that her Atlanta condo would be a "vacation home" and described it as a "2nd home" in certain documents.
The administration is asking Chief Justice John Roberts for a temporary order that would effectively remove Cook from the board. They are also seeking a more lasting order from the whole court that would be in place while her legal case continues.
The Supreme Court has distinguished the Federal Reserve from other agencies, strongly suggesting that Trump can't act against Fed governors without cause. This ruling could potentially set a precedent for future cases involving the removal of Fed governors.
Meanwhile, Cook has said she won't leave her post and won't be "bullied" by Trump. In a recent development, Stephen Miran, Trump's nominee to an open spot on the Fed's board, was confirmed by Senate Republicans on Monday. Miran took part in Wednesday's vote in which the Fed cut its key interest rate by a quarter-point.
The next opportunity for Cook to cast a vote will be at the meeting of the Fed's interest rate setting committee, scheduled for Oct. 28-29. It remains to be seen how the Supreme Court will rule on the administration's request and whether Cook's tenure on the Federal Reserve's board of governors will continue.
In a separate development, Philip Jefferson started serving on the Federal Reserve's Board of Governors in 2022 after being confirmed by the Senate. He began his term as governor on May 23, 2022.
It is worth noting that Trump has previously won orders from the court's conservative majority to fire the presidentially appointed leaders of other independent federal agencies. The outcome of this case could have far-reaching implications for the independence of federal agencies and the appointment process for their leaders.
This is a developing story, and updates will be provided as more information becomes available.
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