President Trump Files Emergency Supreme Court Appeal to Remove Fed Governor Lisa Cook
President Trump filed an emergency Supreme Court appeal to remove Federal Reserve Governor Lisa Cook, alleging mortgage fraud, after lower courts rejected his unprecedented efforts.
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Overview
- President Trump has initiated an unprecedented legal battle, filing an emergency appeal with the Supreme Court to remove Federal Reserve Governor Lisa Cook, alleging unconfirmed mortgage fraud.
- This move follows rejections from a federal judge and an appeals court, which ruled Cook's removal was likely illegal and her alleged fraud insufficient grounds for dismissal.
- U.S. District Judge Jia Cobb specifically ruled that the administration failed to meet the legal requirement that Federal Reserve governors can only be fired 'for cause'.
- Lisa Cook has consistently denied any wrongdoing and has not been charged with a crime, firmly refusing to leave her position on the Federal Reserve Board.
- The Justice Department argues for the President's right to fire without judicial review, while Cook's lawyers assert the President lacks such authority, marking a historic challenge.
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Analysis
Center-leaning sources cover this story neutrally, presenting a balanced account of the legal dispute surrounding President Trump's attempt to remove Lisa Cook from the Federal Reserve Board. They detail the administration's arguments and allegations, Cook's denials and legal challenges, and the broader implications for the Fed's independence, allowing readers to form their own conclusions.
"The government insists the allegations that Cook engaged in mortgage fraud -- prior to her appointment and confirmation to the Fed -- constitute sufficient grounds for the president's decision, and that Cook is not entitled to any due process as a presidential appointee."
ABC News"President Donald Trump has made clear his intention to reshape the Federal Reserve despite its traditional independent status."
NBC News"The Trump administration asked the Supreme Court on Thursday to allow President Trump to remove Lisa Cook from her position on the Federal Reserve Board of Governors while a legal challenge to her firing moves forward."
CBS News"The law allows a Fed member to be removed “for cause” but does not say what that covers or specify a procedure for proving wrongdoing."
USA TODAY"The White House campaign to unseat Cook marks an unprecedented bid to reshape the Fed board, which was designed to be largely independent from day-to-day politics."
Associated PressArticles (13)
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FAQ
President Trump alleges mortgage fraud against Lisa Cook as the basis for her removal and argues for the President's right to fire Federal Reserve governors without judicial review. However, federal courts have ruled that governors can only be removed 'for cause,' and the alleged fraud was deemed insufficient grounds for dismissal by those courts.
Lisa Cook has consistently denied any wrongdoing related to the mortgage fraud allegations and has not been charged with a crime. She has firmly refused to leave her position on the Federal Reserve Board despite the removal efforts.
Both a U.S. District Judge and an appeals court rejected President Trump's efforts to remove Lisa Cook, stating her removal was likely illegal and that the administration failed to meet the legal requirement that Federal Reserve governors can only be fired 'for cause.'
Lisa Cook is an economist with a PhD from the University of California, Berkeley. She has held academic positions at Michigan State University and Harvard University's Kennedy School of Government, served as a senior economist for the Council of Economic Advisers under President Obama, and has extensive experience in economics and international relations. She is the first Black woman to serve on the Federal Reserve Board of Governors.
The Supreme Court appeal is unprecedented because it challenges the established legal framework that Federal Reserve governors can only be removed 'for cause.' The case represents a historic legal battle over presidential power versus judicial oversight in the removal of Federal Reserve governors.
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