Washington – President Trump’s attempt Fire lisa cook As a member of the Board of Governors of the Federal Reserve Bank, the nation is put into unwanted legal water, and eventually even the Supreme Court to provide clarity to provide clarity whether this step crosses a legal limit, the legal scholars expect.
Mr. Trump’s move to get Cook out comes after months, which he says that the interest rates are moving very slowly to cut the rates. But if it is allowed to be removed – a question that will be decided by the courts – and the Senate confirms a replacement, it would mean Mr. Trump must have appointed majority Among the seven-member Board of Governors.
In May 2022, Cook was nominated by the President Joe Biden on the Fed Board and was re -appointed in September 2023 to serve a full 14 -year term, which is scheduled to end in January 2038.
Mr. Trump said that he was removing Cook from his post due to alleged hostage fraud, although he has not been accused of any citizen or criminal offense. Cooks were claimed by Bill Pulte, appointed by Trump of Federal Housing Finance Agency, who sent Letter Attorney General Palm Bondi accused the two of Michigan and Georgia of taking hostage for assets in 2021 and both claimed that the two would be used as its primary residence.
Pulte alleged that Cook was trying to achieve more favorable lending terms than deception. he also has Paid allegations of hostage fraud Against California Sen Adam Shif and New York Attorney General Latitia James, two Democrats are among the most prominent opponents of Mr. Trump. Both have denied the allegations.
In a statement issued through Fed last week, Cook said, “I intend to raise any serious questions about my financial history as a member of the Federal Reserve and hence I am collecting accurate information to answer any valid question and provide facts.”
Mr. Trump’s move to firing Cook has set a legal battle that can end with the Supreme Court, with a 6-3 conservative majority. He Filed a case On Thursday, challenging what the suit said has said Mr. Trump’s illegal effort to remove the unprecedented and illegal Governor Cook from his post, which is allowed to be, if it is allowed [be] The first of its kind in the history of the board. ,
“This is clear from the circumstances of the alleged removal of Governor Cook from the Federal Reserve Board that hostage charges are pretending against him, so that it was called to remove a seat for quick removal and vacating a seat for President Trump and to free his agenda to reduce the freedom of Federal Reserve,” his complaint was filed in the Federal Street Cort in Washington.
The White House has defended Mr. Trump’s move to end Cook from the Fed Board of Governors within its valid rights.
White House spokesperson Kush Desai said in a statement, “The President determined that a governor was the reason to remove, which was trusted a reliable allegation of lies in financial documents from the highly sensitive situation overseeing the financial institutions.” “Removing a governor for the reason improves the accountability of the Federal Reserve Board and the reliability for markets and American people.”
Aggressive expulsion
Mr. Trump’s move for Fire Cook is the latest in a string to the removal of democratic-appointed members of independent agencies, who have tested the limit of his executive authority. They fired the leaders National labor relation board And the merit system Protection Board, Consumer Produce Safety Commission excluded Commissioners and Ended officials Sitting on the National Transport Safety Board and the Federal Labor Relations Authority.
Many firing have faced legal challenges. Officials removed from boards have argued that Mr. Trump has violated federal laws that prevent them from being removed. Instead, the Congress has said that the only basis for their firing is disability, neglect of duty or malicious in the office. The laws were to take decisions from independent federal agencies and political pressure.
Federal Reserve System Laws Federal Reserve Act, The President can only remove a member of his Board of Governors “for the reason”. But the courts have said what could be the “reason”. Despite not being defined in the Federal Reserve Act, Cook argues in his trial that it means examples of disability, neglect of duty, malicious or comparable misconduct in the office.
The question of what is the qualification as a good reason, and whether the cook’s alleged action increases on it, there is a possibility of an important question to be answered during litigation, Adam White, a senior partner of the American Enterprise Institute, said Adam White, who focuses on the Supreme Court.
“If [the justices] Explain the good reason, they have to do this with an eye for the power and purpose of the Federal Reserve System, usually the powers of the system and the purpose of its freedom. What is a ‘good reason’ regarding the service of a fed governor? ,
Supreme Court and Fed
In a series of recent decisions, the Supreme Court has re -handed over the power of the President to remove executive officials without any reason.
In 2020, the High Court ruled that the structure of the Consumer Financial Protection Bureau – only headed by a leader was only in disability, neglect or malfunction – was unconstitutional.
Then in one 2021 decision Reducing the structure of the Federal Housing Finance Authority, the High Court admitted that the 2008 Recovery Act seems to give more removal authority to the President for the “reason” Ban “,” to give more removal authority to the President, “such as prohibiting examples of disqualification, neglect of duty or Malabhas in the office. Nevertheless, it has been said that “the constitution prohibits the ‘minor ban’ on the power of the President to remove the head of an agency with a single top official.”
This year, in response to the emergency appeals brought by officials removed from NLRB and MSPB, who are multi-member bodies, are Supreme Courts. Mr. Trump allowed those officers to set fire While their legal challenges move forward, even though the Congress saved him from being removed in the will. But in a brief decision in the case which appeared 6-3, the majority of the Supreme Court dropped the fed.
The two removed officers, Guen Wilchex and Kathy Harris expressed concern about the consequences of allowing their expulsion and whether it would question the constitutionality of safety to remove the cause-for the Fed. The court said that it disagrees. Instead, it called the Central Bank “specificly structured, a semi-private unit, which follows the first and in the specific historical traditions of the United States,” the 18th and 19th century Central Banks of the Central Bank Eastern Fed.
Writing in the Decent, Justice Elena Kagan said that the majority created a “Bespoke Federal Reserve Exception”, even though its freedom “NLRB, MSPB, FTC, FCC, and similarly on the same constitutional and analytical foundation.
Joel Ellicia, a law of a law of Catholic University, said, “The court does not solve this question in that language. All the courts are saying whether the Federal Reserve is different from FTC or is different from NLRB.” “Yes, it is different, but does it mean that it is not subject to the same rule? The court does not say it.”
President’s removal powers
While Mr. Trump has demanded to increase the new levels of control over the Executive Branch, the Supreme Court has Recognized narrow exception For the powers of removal, the Congress is allowed to protect some officials from being removed without any reason.
In a 1935 judgment, the executioner of the Humphrey, the United States, the court found that the Congress may ban the President’s rights to remove the multi-physical commissions of the experts that are balanced with biased lines and do not use any executive power.
In its judgment, allowing the firing of the Labor Board members, the Supreme Court’s majority stated that the Department of Justice “is likely to show that both NLRB and MSPB practice executive power.”
But White said that Fed is different from those agencies because it is due to rights.
“Under the examples of the last 15 years, the question is what kind of powers do the agency go and are they largely executive?” He said. “And for the fed, it has regulatory powers and it is possible that they give the verge to something like executive power, but whatever the Fed does, its overwhelming majority are its monetary powers. That is why the court admitted that the fed is different.”
White continued: “The whole reason for the President’s attack on the NLRB vs. Fed is that the heavy purpose of the Fed and its most important power is very different than all simple law enforcement policy. Those powers, which are going back to the beginning of the country, have never been considered as executive powers.”
However, Alicia disagreed. He said that the Board of Governors have a comprehensive inspection and regulatory authority on the country’s banking system.
“They are the chief executive powers,” he said.
