Governor of the Lisa Cook federal reserve system filed a lawsuit against Trump’s administration to attack the President’s attempt to remove from the office and prepare the ground for an unprecedented legal battle that could test the independence of the US central bank.
The Court emphasizes the long -term protection of the political independence of the Fed. The Supreme Court has previously indicated that the removal of “for the cause” requires a proper process. Cook’s action claims that the President’s unilateral decision undermines her rights and institutional autonomy of the Fed.
“This case concerns more than one individual – the protection of the independence of the Federal Reserve from incorrect political interference,” Cook’s legal team said in a statement.
The first attempt to launch in the 112 -year -old Fed history
No president has ever tried to fire the Governor of the Federal Reserve system until President Donald Trump has notified Cook’s removal at the end of Monday on his social account of truth. Before her appointment to the Fed Council, he quoted charges of mortgage fraud dating back to 2021.
Legal experts note that, according to the current precedens, presidents cannot reject Fed officials before political disputes, but they can do so “for a reason” – usually defined as misconduct or neglect of duties. Cook has not been charged with any crime, nor has it the opportunity to formally respond to the accusation.
Criticism of the White House
Shooting comes in the middle of repeated public clashes Trump with Fed chairman Jerome Powell and other politicians for not detecting interest rates faster. The key short -term Fed rate is 4.3% after a one -point reduction at the end of last year. Powell recently indicated that further reduction in rates is probably at the upcoming meeting of 16 – 17 September.
Critics say that accusations against a cook may be an excuse to create an opening on the Fed for the nominated for Trump. Trump has previously said that he appoints only officials who are back lower rates.
(Tagstotranslate) Lisa Cook
