
"The New York Times's Ann E. Marimow summed up the arguments before the court and reported that justices from across the ideological spectrum questioned whether the allegations President Trump lodged against Ms. Cook an unproven assertion that she engaged in mortgage fraud before taking office were serious enough to allow the president to fire her."
"Kavanaugh went so far during his questioning to suggest that if the court found in Trump's favor, it would mean the president could fire all independent agency officials at-will ending the for cause legal requirement. Kavanaugh argued the current president's appointees would likely be removed for cause on January 20, 2029 if there's a Democrat presidentthen we're really at-will removal."
"Kavanaugh: For present purposes, you accept the constitutionality of the for-cause removal provision for the Federal Reserve, and that is what protects the independence of the Federal Reserve. What, in your view, is the purpose of that independence? Sauer: It protects the governors. Exactly reflecting the plain text of the statute, it protects the governors from removal for policy disagreement or for no reason at all. Kavanaugh: What is the broader purpose of that? Sauer: To preserve the independence of the Federal Reserve. Kavanaugh: And what is the broader purpose of that? Sauer: Well, there are a number of reasons that are discussed by the amici, and I think not disputed by us, which is that there is, you know, a long tradition of having this exercise of monetary policy be exercised independent of, you know, executive influence, and we don't dispute that that's what Congress was doing in that statute."
The Supreme Court considered President Trump's effort to remove Federal Reserve Governor Lisa D. Cook amid unproven mortgage fraud allegations. Justices from across the ideological spectrum questioned whether the allegations were serious enough to permit removal. Justice Kavanaugh warned that a decision for the president could enable at-will removal of independent agency officials and effectively eliminate for-cause protections. Solicitor General Sauer argued the for-cause provision protects governors from removal for policy disagreement or without reason and preserves a long tradition of insulating monetary policy from executive influence.
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