Appeals court rejects Trump bid to fire Fed governor Lisa Cook
The U.S. Court of Appeals for the District of Columbia circuit rejected former President Donald Trump’s attempt to remove Federal Reserve governor Lisa Cook from her position. The court ruled 2-1 against Trump’s emergency request to fire cook before a scheduled Federal Reserve meeting,allowing her to remain in office while the legal dispute continues. A concurring opinion emphasized that Cook has a property interest in her position and is entitled to due process before removal, noting that she was not given meaningful notice or an opportunity to respond to allegations against her.
Trump had announced Cook’s firing last month, citing mortgage fraud allegations raised by the Federal Housing Finance Agency. Though,Cook sued to challenge the firing and was granted a temporary restraining order by a federal judge. The judge highlighted the importance of Federal Reserve independence, supporting Cook’s reinstatement.
Lisa Cook has maintained that Trump had no legal cause or authority to remove her, and she intends to stay in her role. Her term as Federal Reserve governor is set to expire in 2038. Trump may seek intervention from the Supreme Court, but a decision is unlikely before the upcoming Fed meeting.
Appeals court rejects Trump bid to fire Fed governor Lisa Cook
An appeals court rejected President Donald Trump’s effort to remove Federal Reserve governor Lisa Cook from her position.
The U.S. Court of Appeals for the District of Columbia Circuit ruled 2-1 against Trump’s bid for emergency relief to fire Cook before the two-day Fed meeting on Tuesday. The court ruled that she will stay in her position as she litigates her dispute with the president. Trump is likely to seek aid from the Supreme Court, but it’s unlikely a ruling will be made before the meeting begins.
In a concurring opinion written by Judge Bradley Garcia, joined by Judge Michelle Childs, he argued that Cook is likely to succeed in her case against Trump, so she should remain in her position for the time being.
“Given that Cook has a property interest in her position, she is entitled to ‘some kind’ of process before removal,” Garcia wrote. “Before this court, the government does not dispute that it provided Cook no meaningful notice or opportunity to respond to the allegations against her. The government argues only that Cook ‘does not explain what difference a hearing would have made.’ Even accepting that premise, Cook’s entitlement to process stands apart from whether she would succeed in securing a different outcome.”
Trump announced Cook’s firing last month over mortgage fraud allegations made by Federal Housing Finance Agency Director Bill Pulte. Cook sued over the firing, being granted a temporary restraining order by Judge Jia Cobb last week.
“The public interest in Federal Reserve independence weighs in favor of Cook’s reinstatement,” Cobb wrote in an opinion on her decision.
Cook first declared her intention to stay in her position just hours after Trump announced her firing.
JUDGE BLOCKS TRUMP FROM FIRING FED GOVERNOR LISA COOK
“President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so,” she said.
Cook’s term isn’t set to expire until 2038.
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