The post Fed Governor Lisa Cook Sues President Trump Over His “Unlawful” Attempt To Fire Her appeared first on Coinpedia Fintech News
On Friday, Judge Jia Cobb held a hearing in a Washington, DC, court about the Cook vs Trump lawsuit. The emergency hearing over President Donald Trump’s attempt to fire Federal Reserve Governor Lisa Cook ended with no immediate ruling.
What Happened?
Cook filed a lawsuit against President Trump on Thursday morning, after he decided to fire her, citing mortgage fraud. The allegation follows Cook’s purchase of a home and a condo in 2021.
In her filing, Cook requested the judge to rule that Trump’s attempt to remove her is unlawful and void. She also asked the judge to ensure that she remains an active member of the Federal Reserve. Cook did not address her mortgage allegations in the filings.
The oral arguments between the two parties continued for two hours in court and centered on Cook’s request for a temporary restraining order (TRO) to block her firing.
Cook’s lawyer, Abbe Lowell, said, “She should not be taken out of her office, she shouldn’t be disconnected from her electronics…. She should do all the things that she did a week ago before all this started, because that is the status quo.”
Experts Speculate Connection with Jerome Powell
It has been evident that President Trump was disappointed with Fed Chair Jerome Powell’s decision to keep the interest rate unchanged. Trump highly criticised Powell and even held an official meeting to discuss firing Powell. Now, when Trump is trying to fire another Fed official, experts speculate a connection. But is it really?
According to the BBC, Yaakov Roth, a top Justice Department attorney, proved the speculation false. During Friday’s hearing, he argued that there were valid grounds to dismiss Cook from her position as a Fed. He also emphasized that the President’s desire to remove Cook was not connected to seeking greater control over the Federal Reserve or influencing its monetary policy. These statements dismiss the suspected connection between Powell and Cook.
Additionally, White House spokesman Kush Desai said that the President’s decision to fire Cook would have improved the Federal Reserve Board’s accountability and credibility for both the markets and the American people.
He added, “The President determined there was cause to remove a governor who was credibly accused of lying in financial documents from a highly sensitive position overseeing financial institutions.”
What’s Next? Hearing on Tuesday
Director of the Federal Housing Finance Agency Bill Pulte accused Cook of falsifying records to obtain a mortgage. These allegations remain absent in Cook’s filing, and she stays out of any charges. Now the fate of this is expected to be decided on Tuesday, following further briefing from Cook’s legal team.