Trump Petitions the U.S. Supreme Court to End Employment of Fed Governor Lisa Cook.
The Trump administration has requested the Supreme Court to allow the dismissal of Lisa Cook, the governor of the Federal Reserve, marking the first time such a request has been made since the founding of the central bank in 1913.
President Trump lawfully removed Lisa Cook for cause, according to White House spokesman Kush Desai. However, this move reflects Trump's broad vision of presidential power since returning to office in January.
Fed governors can only be removed by a president for cause, a term not defined and without established procedures. Cook claims that the president's reasons for her removal are a pretext for firing her due to her stance on monetary policy.
In a legal battle that puts the independence of the Fed at risk, Cook sued Trump after he announced his intention to remove her. The U.S. Court of Appeals for the District of Columbia Circuit denied the government's request to stay Cobb's order on Monday, which temporarily prevented Trump from removing Cook on September 9.
Federal district judge Jia Cobb ruled that Trump's claims that Cook committed mortgage fraud before taking office, which Cook denies, were probably not sufficient grounds for removal.
Cook, the first black woman to hold the position of Fed governor, participated in the Federal Reserve's two-day meeting held in Washington on Tuesday and Wednesday, during which the central bank decided to cut interest rates by a quarter percentage point.
The law creating the Federal Reserve includes provisions to protect the central bank from political interference. This case, if it reaches the Supreme Court, could test these provisions and set a precedent for future presidents.
The government intends to appeal the decision regarding Cook's removal. Trump's legal team announced they would appeal the decision to the appropriate appellate court. The institution that filed the motion to intervene on Monday, January 12, was the office of US President Donald Trump.
It's important to note that Lisa Cook was appointed by former Democratic president Joe Biden. This move by Trump comes amidst Trump's demand that the Fed cut rates aggressively this year, criticizing Fed chairman Jerome Powell for his management of monetary policy.
No president has ever removed a Federal Reserve governor before, making this an unprecedented move in the history of the central bank. The government has stated it will ask the judges to intervene, and the outcome of this case could shape the future of the Federal Reserve and its independence from political influence.
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