The White House is moving forward with efforts to dismiss Lisa Cook, a member of the Federal Reserve, as the deadline approaches on Sunday at 3 PM.
A brief submitted to the U.S. DC Court of Appeals contends that the president has the authority to remove Cook, claiming her assertions regarding procedural violations lack merit.
In a recent debate, the president emphasized that Cook’s removal rests solely on his discretion and is not subject to judicial review.
“It’s crucial for both the public and executives to ensure the Federal Reserve maintains its integrity, which involves respecting the president’s legal right to dismiss governors ‘for cause’ when warranted,” the court document states.
In a submission on Saturday, Cook’s attorneys argued that her removal would effectively erase the precedent of central bank independence from executive influence. They expressed concern that President Trump’s decision to remove her could send a distressing message to financial markets, one that’s difficult to rectify.
“Central banks like the Federal Reserve are independent for good reasons. Even the mere perception of political meddling can undermine investor trust, which is vital for economic stability and growth. Once that confidence is shaken, it’s tough to restore,” Cook’s legal team contended.
Last month, Trump announced he had removed Cook for alleged misconduct related to mortgage fraud. On August 15, the Federal Housing and Treasury Agency (FHFA) indicated Cook had been tied to properties in both Michigan and Georgia. Further inquiries revealed discrepancies regarding her classification of one property as a “second home” while also describing it as an investment in other official documents.
Earlier this month, reports surfaced that the Justice Department has initiated an investigation into Cook regarding these mortgage fraud allegations. In response to the White House’s actions, Cook has filed a lawsuit disputing the administration’s claims.
Recent reports highlighted inconsistencies, as Cook identified her Georgia residence as a “vacation home” in financial disclosures, conflicting with allegations of mortgage fraud from the administration.
U.S. District Judge Jia Cobb recently placed a temporary hold on Cook’s removal, stating the administration’s claims show substantial evidence that she had significant involvement in matters requiring “cause” for her dismissal. The administration is appealing this decision, with the Sunday deadline looming just before the Federal Reserve’s upcoming two-day meeting.
At the conclusion of that meeting, Federal Reserve Chairman Jerome Powell is expected to announce potential interest rate changes from the current rate of 4.33%, with projections indicating a quarter-point reduction may occur.
Trump has been openly critical of the Federal Reserve in recent months, particularly targeting Powell, and has cited his authority under the Federal Reserve Act of 1913 to justify efforts to remove Cook.
The Hill has sought comments from Cook’s legal representatives.
