Washington – Federal Reserve Governor Lisa Cook on Thursday filed a case against President Trump, Chairman Jerome Powell and Fede Governors, a federal judge asked the central bank to block the President’s effort to set him on fire.
Mr. Trump announced the termination of Cook from the Fed Board of Governors late on Monday night, in which he cited the allegations Hostage fraudWhich he described as a “fraud and potential criminal”. The move took place after the month of Fed and Powells to leave the interest rates of the interest so far this year relatively higher.
Cook filed him trial In the US District Court for Columbia district on Thursday. He asked the court to announce that Mr. Trump’s firing is “illegal and zero” and this cook “remains an active member of the Board of Governors of the Federal Reserve.”
“Governor Cook demanded immediate manifesto and prohibitory relief relief to confirm his position as a member of the Board of Governors, protecting him and the Congress’s Congress compulsory freedom, and allowed Governor Cook and Federal Reserve to continue their important work,” Suit said.
Fed board members are confirmed by the Senate and served for 14 years of terms. Under the Federal Reserve Act of 1913, President Only remove them quickly “For reason.” The law does not specify what is eligible as “cause”, and it has never been tested in court, but it is usually considered malicious.
In his suit, Cook asked the court to explain that Fed Board members could “be removed only for reason, meaning that examples of disability, neglect of duty, malicious in office, or comparable misconduct.”
Trump administration is Argued in the past The President has a legal right to remove members of federal boards using “adequate executive power” like the National Labor Relations Board.
The Supreme Court has upheld Shri Trump’s power to set fire to some board members, but said in May that the Federal Reserve is a separate case, called “uniquely structured, semi-private unit”.
Earlier this month, Federal Housing Finance Agency, Director appointed by Bill Pulte’s Trump, Accused cook Claiming two houses to prove hostage documents wrong that he bought as his primary residence in 2021. He alleged that Cook – an economist who has served in the Fed Board since 2022 – had committed hostage fraud, and referred to the case to the Attorney General Palm Bandy and Special Attorney Ed Martin of the Department of Justice.
After days, Mr. Trump publicly called Cook to resign.
At that time, Cook did not directly address the substance of Pulte’s allegations, but said in a statement that “there was no intention to step down from my post due to some questions raised in a tweet.” He said that she would “take any question about my financial history seriously” and said that she was collecting more information.
His lawyer, Abbe Lowell, said on Monday that Mr. Trump did not have the legal right to firing Cook “entirely on a referral letter” for the leadership of the Department of Justice.
Cook came widespread when Mr. Trump pressurized the Fed on low interest rates. The Central Bank’s Rate-Setting Committee-both Cook and Powell sit-so far this year has opted to give up a relatively higher interest rates, with fear that inflation may be revived. Last week, Powell Indicated The central bank may soon cut rates, but it will “move carefully.”
The President advocates immediate rate cuts, which can promote economic growth and make it cheaper to borrow money, although at risk due to high inflation. He has fired several times in the last few months to Powell and has encouraged other Fed officials to eliminate him and the slash rates.
The fed usually decides the interest rate independently. Mr. Trump is Rarely the first president To criticize the fed to leave the rates high, but he has been unusually vocal. Last year, he argued that he should have “at least” [a] Say “in the tricks done by the central bank.
Many experts believe that it is important for central banks to operate independently so that they can decide on economic data, not on the basis of politics. If elected officers are in charge of monetary policy, they can opt for politically popular short-term benefits of low interest rates-like a warm economy and affordable borrowed costs lead to high inflation in the long run, Brookings Institution Senior Fellow David Wesel Noted earlier this year,
