Ahead of the key central bank’s vote on interest rates, the US administration under Donald Trump has renewed its push to fire Fed governor Lisa Cook.
Trump administration filed a response, arguing that Cook’s legal arguments for why she should stay on the job were meritless. Lawyers for Cook argued back, saying the filing that the Trump administration has not shown sufficient cause to fire her, and stressed the risks to the economy and country if the president were allowed to fire a Fed governor without proper cause.
Trump’s lawyer argued that “The public and the executives share an interest in ensuring the integrity of the Federal Reserve. And that requires respecting the president’s statutory authority to remove governors ‘for cause’ when such cause arises.”
A Trump appointee to the agency that regulates mortgage giants Fannie Mae and Freddie Mac, Bill Pulte, has accused Cook of signing separate documents in which she allegedly said that both the Atlanta property and a home in Ann Arbor, Michigan, also purchased in June 2021, were both “primary residences.”
After Pulte submitted a criminal referral to the Justice Department, it has now opened for investigation. Trump has relied on these allegations to fire Fed governor Lisa Cook.
Cook hit back at the Republican leader, suing the Trump administration to block her firing, and a federal judge ruled Tuesday that the removal was illegal and reinstated her to the Fed’s board.
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(With Inputs from Agencies)
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