Trump asks Supreme Court to let him fire Fed Governor Lisa Cook
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The news: US President Donald Trump has asked the Supreme Court to let him fire Federal Reserve Governor Lisa Cook while she challenges his attempt to oust her, drawing the justices into a high-profile legal fight with potentially major implications for the central bank’s independence.
The Justice Department on Thursday (Friday AEST) submitted an emergency request after a federal appeals court on Monday declined to allow Cook’s removal after a lower court ruled last week that she could remain on the job.
The context: The Trump administration accused Cook of fraudulently listing homes in Michigan and Georgia as “primary residences” in mortgage documents before joining the Fed in 2022.
Cook denies wrongdoing and has not been charged.
A US District Court judge ruled on 9 September that the allegations did not satisfy the legal requirement that Fed governors be removed “for cause,” and that Cook was likely to win her claim. A divided appeals court on Monday upheld the lower court’s decision, finding that Cook was likely to prevail on her due process claim. That ruling kept her in place ahead of the Fed’s September meeting this week, where she voted with the majority to cut interest rates by a quarter percentage point, while Trump was pressing for a deeper reduction.
The Supreme Court has previously said the Fed is “uniquely structured,” making the case a significant test of presidential removal authority.
The sources: The Associated Press, Bloomberg
