"The best reading of the for cause' provision is that the bases for removal of a member of the Board of Governors are limited to grounds concerning a Governor's behavior in office and whether they have been faithfully and effectively executing their statutory duties, Cobb wrote. Trump has accused Cook of committing mortgage fraud by signing documents in 2021 that listed more than one property as her permanent residence."
"Those mortgages were obtained before President Biden appointed her to the Fed in 2022. Cook's lawyer Abbe Lowell said in a statement that Cobb's decision recognizes and reaffirms the Fed's independence from political interference. Allowing the president to unlawfully remove Governor Cook on unsubstantiated and vague allegations would endanger the stability of our financial system and undermine the rule of law, Lowell said."
A court held that removal of a Board of Governors member for cause is limited to grounds related to behavior in office and faithful, effective execution of statutory duties. President Trump accused Governor Cook of mortgage fraud for signing 2021 documents listing more than one property as her permanent residence; those mortgages were obtained before her 2022 Fed appointment. FHFA Director Bill Pulte sent two criminal referrals to Attorney General Pam Bondi on Aug. 15, prompting Trump's attempt to dismiss Cook for cause on Aug. 25; Cook denied wrongdoing and filed suit on Aug. 28. The DOJ began examining on Sept. 4 whether Cook misrepresented occupancy of three properties to secure favorable mortgage terms, though Cook has not been charged. The ruling comes before a Federal Reserve meeting to vote on cutting the fed funds rate and may affect votes by Trump's nominee Stephen Miran, whose Senate confirmation is expected this week.
Read at www.housingwire.com
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