Court Holds Off Ruling in Fed Governor Dismissal Case
(MENAFN) A federal court hearing ended Friday without a ruling on Federal Reserve Governor Lisa Cook’s request for temporary protection from dismissal, as her lawsuit against President Donald Trump advances, media reported.
Cook’s attorney, Abbe Lowell, disputed the Justice Department’s claim that Trump had legal grounds to remove her based on allegations of mortgage fraud. The accusations stem from statements by Federal Housing Finance Agency Director Bill Pulte, who alleged Cook submitted fraudulent documents related to real estate transactions in Atlanta and Ann Arbor, Michigan, before her appointment to the Fed.
Lowell argued that the administration’s reliance on statements made through social media lacked the legal weight to justify Cook’s removal. Government attorneys countered that the decision to remove a Federal Reserve governor rests within the president’s authority.
Presiding Judge Jia Cobb acknowledged the unprecedented nature of the case, pointing to the legal complexity surrounding Federal Reserve Board governance. Under the Federal Reserve Act, governors may only be removed by the president for cause, a clause meant to protect central bank independence from political interference.
Cook filed lawsuits Thursday against Trump, the Fed Board of Governors, and Fed Chair Jerome Powell, asserting that her termination was unlawful. She sought a court injunction to prevent the dismissal from taking effect while the case proceeds.
Trump filed a motion Friday urging the court to deny Cook’s request for continued employment.
The conflict escalated earlier in the week when Trump declared he had removed Cook, citing misconduct allegations. His action followed warnings issued days prior, threatening her with dismissal if she refused to step down.
Appointed by President Joe Biden in 2022, Cook has rejected the accusations and pledged to remain in her position.
The Federal Reserve stated it will comply with any final court decision regarding the legality of Cook’s dismissal.
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