Trump Administration Escalates Efforts to Remove Fed Governor Lisa Cook Amid Legal Challenges
The Trump administration is pursuing emergency legal action to remove Federal Reserve Governor Lisa Cook, citing mortgage fraud allegations, despite a judge's ruling against her removal.
Overview
- The Trump administration is seeking emergency legal rulings to remove Federal Reserve Governor Lisa Cook, who was initially targeted for removal on August 25.
- Cook faces allegations of mortgage fraud, specifically falsely claiming two homes as her principal residence, which the Trump administration cites as grounds for removal.
- U.S. District Judge Jia Cobb previously ruled Cook's attempted removal illegal, reinstating her and stating the administration failed to meet the "for cause" requirement.
- The Trump administration has appealed this ruling, requesting an emergency reversal from an appeals court and preparing for potential Supreme Court intervention.
- If Cook is removed, Trump nominee Stephen Miran could be confirmed, potentially advocating for a steeper half-point reduction in the Fed's benchmark interest rate.
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Analysis
Center-leaning sources cover the story neutrally, focusing on factual reporting of the legal dispute surrounding Lisa Cook's position on the Federal Reserve board. They present the arguments from both the Trump administration and Cook's legal team, along with the judge's rulings, without adopting a biased stance or using loaded language. The coverage provides balanced context on the implications for the Fed's independence and interest rate decisions.
"The Trump administration asked a federal appeals court Thursday to lift a ruling that blocked President Trump from firing Federal Reserve Governor Lisa Cook, in time for a crucial meeting next week when Fed officials will decide whether to lower interest rates."
CBS News"The request represents an extraordinary effort by the White House to shape the board before the Fed’s interest rate-setting committee meets next Tuesday and Wednesday."
Chicago Tribune"The request represents an extraordinary effort by the White House to shape the board before the Fed’s interest rate-setting committee meets next Tuesday and Wednesday."
Associated Press"The case could soon reach the Supreme Court, where the conservative majority has allowed Trump to fire several board members of other independent agencies but has suggested that power has limitations at the Federal Reserve."
Associated Press"The ruling on Tuesday came as the central bank is due to meet next week and is expected to announce its first interest rate cut since September 2024."
BBC News"The ruling recognizes and reaffirms the importance of safeguarding the independence of the Federal Reserve from illegal political interference."
CBS News"The ruling stymies Trump's aggressive effort to exercise more control over the central bank, at least for now."
NPR"Cobb concluded that Trump's attempted firing of Cook likely violated the Federal Reserve Act, which limits the basis for firing a Governor to their behavior in office, and ran afoul of Cook's due process rights."
ABC News"The case, which will likely end up before the U.S. Supreme Court, has ramifications for the Fed's ability to set interest rates without regard to politicians' wishes, widely seen as critical to any central bank's ability to keep inflation under control."
USA TODAY"The ruling means Cook will remain on the board of the central bank until her case is heard at length."
NBC News"The ruling, which will almost certainly be appealed, is a blow to the Trump administration’s efforts to assert more control over the traditionally independent Fed."
Associated PressArticles (30)
Center (11)
FAQ
Lisa Cook faces allegations of mortgage fraud related to falsely claiming two homes as her principal residence, which the Trump administration cites as grounds for her removal from the Federal Reserve Board.
Judge Jia Cobb ruled that the Trump administration's attempt to remove Lisa Cook was illegal because it failed to meet the 'for cause' requirement necessary for removal of a Federal Reserve Governor, and therefore reinstated her.
If Cook is removed and Trump nominee Stephen Miran is confirmed, he could advocate for a steeper half-point reduction in the Federal Reserve's benchmark interest rate, potentially influencing monetary policy direction.
Lisa Cook is an economist with a PhD from the University of California, Berkeley, and prior academic roles at Michigan State University and Harvard Kennedy School. She also served as a senior economist on the Council of Economic Advisers under President Barack Obama and as senior adviser at the U.S. Treasury Department.
The Trump administration has appealed the U.S. District Judge's ruling, seeking an emergency reversal from an appeals court and is preparing for possible Supreme Court intervention to remove Lisa Cook from the Federal Reserve Board.
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