Lisa Cook takes the oath of office to serve as a member of the Board of Governors at the Federal Reserve System during a ceremony at the William McChesney Martin Jr. Building of the Federal Reserve May 23, 2022 in Washington, DC.
Drew Angerer | Getty Images
A federal judge on Tuesday night blocked President Donald Trump[1] from firing Federal Reserve Board Governor Lisa Cook as her lawsuit challenging her termination plays out.
Judge Jia Cobb[2]‘s order came nearly two weeks after Cook sued Trump[3] to prevent him from removing her from the central bank.
“The public interest in Federal Reserve independence weighs in favor of Cook’s reinstatement,” Cobb wrote in an opinion on her decision..[4]
A spokesperson for Cook’s attorney, Abbe Lowell, did not immediately reply to a request for comment on the ruling, which enjoins Fed Chairman Jerome Powell[5] and the Board of Governors “from effectuating in any manner” Cook’s removal because of Trump’s order.
Trump said on Aug. 25 that he was firing Cook[6] because of suggestions[7] by Federal Housing Finance Agency[8] Director Bill Pulte[9] that she had committed mortgage fraud in connection with documents she signed for two residential properties she owns in Georgia and Michigan.
Cook, who is the first Black woman to serve on the Fed board, denies any wrongdoing.
“I will not resign,” Cook said hours after Trump said he was firing her.
“President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so.”
Trump has been critical of the Fed, Powell,[10] and governors, including Cook, for not cutting interest rates as the president has demanded.
Trump is the first president to attempt to fire a member of the Fed Board.
The Federal Reserve Act says that board governors can be removed by a president only “for cause.”
Cook’s lawyer, Abbe Lowell[11], during an Aug. 29 court hearing, scoffed at the idea that Trump had legal cause to terminate her.
“You can’t have Director Pulte’s crazy midnight tweets be the cause,” Lowell told Cobb in U.S. District Court in[12] D.C., during that hearing.
This is developing news. Check back for updates.
References
- ^ Donald Trump (www.cnbc.com)
- ^ Judge Jia Cobb (www.cnbc.com)
- ^ Cook sued Trump (www.cnbc.com)
- ^ Cobb wrote in an opinion on her decision.. (storage.courtlistener.com)
- ^ Jerome Powell (www.cnbc.com)
- ^ firing Cook (www.cnbc.com)
- ^ suggestions (www.cnbc.com)
- ^ Federal Housing Finance Agency (www.fhfa.gov)
- ^ Bill Pulte (www.cnbc.com)
- ^ Powell, (www.cnbc.com)
- ^ Abbe Lowell (www.cnbc.com)
- ^ U.S. District Court in (www.dcd.uscourts.gov)