The Donald Trump administration on Thursday urged Chief Justice John Roberts to issue a temporary order removing Lisa Cook from the Federal Reserve ’s board of governors, while also requesting a broader ruling from the full Supreme Court as her legal battle continues.
“Put simply, the president may reasonably determine that interest rates paid by the American people should not be set by a governor who appears to have lied about facts material to the interest rates she secured for herself — and refuses to explain the apparent misrepresentations,” solicitor general D John Sauer wrote in a filing, according to the Associated Press.
The administration’s argument centers on Trump’s allegation of “mortgage fraud.” Cook in 2021 claimed two properties — in Michigan and Georgia — as “primary residences,” which can secure lower mortgage rates. She has denied wrongdoing and has not been charged. Loan documents show she described her property in Georgia's Atlanta as a “vacation home” and, in a separate federal security form, as a “2nd home,” undercutting the fraud claims.
The push to unseat Cook marks an unprecedented White House attempt to reshape the Fed, whose governors traditionally serve independently of day-to-day politics. No president in the central bank’s 112-year history has removed a sitting governor.
Trump moved to fire Cook on August 25, but US district judge Jia Cobb reinstated her last week, ruling that Fed governors may only be dismissed “for cause” related to misconduct while in office. Because Cook did not join the board until 2022, Cobb held that the administration’s reasoning did not apply. She also found that Cook was denied due process.
A federal appeals court panel in Washington similarly rejected, by a 2-1 vote, the administration’s request to let the firing proceed.
Cook, appointed by Trump's predecessor Joe Biden, has vowed not to step down. “I won’t be bullied,” she said.
“Put simply, the president may reasonably determine that interest rates paid by the American people should not be set by a governor who appears to have lied about facts material to the interest rates she secured for herself — and refuses to explain the apparent misrepresentations,” solicitor general D John Sauer wrote in a filing, according to the Associated Press.
The administration’s argument centers on Trump’s allegation of “mortgage fraud.” Cook in 2021 claimed two properties — in Michigan and Georgia — as “primary residences,” which can secure lower mortgage rates. She has denied wrongdoing and has not been charged. Loan documents show she described her property in Georgia's Atlanta as a “vacation home” and, in a separate federal security form, as a “2nd home,” undercutting the fraud claims.
The push to unseat Cook marks an unprecedented White House attempt to reshape the Fed, whose governors traditionally serve independently of day-to-day politics. No president in the central bank’s 112-year history has removed a sitting governor.
Trump moved to fire Cook on August 25, but US district judge Jia Cobb reinstated her last week, ruling that Fed governors may only be dismissed “for cause” related to misconduct while in office. Because Cook did not join the board until 2022, Cobb held that the administration’s reasoning did not apply. She also found that Cook was denied due process.
A federal appeals court panel in Washington similarly rejected, by a 2-1 vote, the administration’s request to let the firing proceed.
Cook, appointed by Trump's predecessor Joe Biden, has vowed not to step down. “I won’t be bullied,” she said.
You may also like
What symptoms appear in the body a few days before a heart attack? Learn from an expert
MHA: National Socialist Council of Nagaland declared unlawful association; ban effective from September 28
Arsenal star Leandro Trossard given red card verdict after Erling Haaland controversy
Stock market ends lower after volatile session amid IT selloff, H-1B visa concerns
Delhi riots case: SC notice to Delhi police on pleas of Sharjeel Imam, Umar Khalid seeking bail
