Governor Lisa Cook has requested an emergency injunction to block President Trump's firing over alleged mortgage fraud tied to 2021 property purchases. Cook joined the Federal Reserve Board in 2022. The injunction seeks to keep her on the seven-member board while her lawsuit to overturn the removal proceeds through the courts. A successful firing would break precedent; no president has ever removed a Fed governor in the agency's 112-year history. Economists broadly support Federal Reserve independence because it enables the central bank to take politically difficult actions, such as raising interest rates to fight inflation. The Justice Department urged courts to defer to the President's removal decision.
A case that could provide the Trump administration with new and expansive power over the traditionally independent Federal Reserve will get its first court hearing Friday. Federal Reserve Governor Lisa Cook has requested an emergency injunction to block President Donald Trump's attempt to fire her over allegations that she committed mortgage fraud when she purchased a home and condo in 2021. She was appointed to the Fed's board by former president Joe Biden in 2022.
In a court filing the department said that "incredibly, Dr. Cook even now hazards no explanation for her conduct and points to nothing she would say or prove in any hearing that would conceivably alter the President's determination that the perception of financial misconduct alone is intolerable in this role." The department also argued that any court review of Trump's decision to fire Cook would "have to be highly deferential, lest it intrude into the President's constitutional authority'' over key government officials.
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