Lisa Cook to remain at Federal Reserve while fighting Trump's attempt to fire her, judge rules

"Cook is legally challenging the US president after he sought to remove her, citing unconfirmed allegations of mortgage fraud, amid an extraordinary campaign by his administration to strengthen its control over the US central bank. She asked US district judge Jia Cobb to impose a temporary restraining order against Trump's attempt to immediately dismiss her, pending further litigation. The administration has argued that Trump is able to fire Fed governors for cause and appoint replacements."

"Trump has spent months attacking the Fed, where most policymakers including Cook have so far defied his calls for interest rate cuts. He has spoken of rapidly building a majority on the central bank's board, calling into question the future of its longstanding independence from political oversight. Trump moved to fire Cook after one of his allies, Bill Pulte, whom he tapped to lead the US Federal Housing Finance Agency, alleged she had claimed two different properties as primary residences when obtaining mortgages in 2021."

"In a court filing, Cook's attorneys insisted she did not ever commit mortgage fraud as they outlined their case. Multiple federal agencies were provided details of Cook's mortgage arrangements when she was first nominated, by Joe Biden, to join the Fed's board in 2022, according to her representatives. The Government has long known about the alleged facial inconsistencies in Governor Cook's financial documents, the filing said."

A federal judge permitted Federal Reserve governor Lisa Cook to stay on the Fed board while she sues President Trump over his effort to remove her. Trump sought her removal after an ally alleged she misstated primary residences on mortgage applications in 2021, and referred the matter to the Department of Justice. The administration contends the president can fire Fed governors for cause and appoint replacements. Cook sought a temporary restraining order from US district judge Jia Cobb and her attorneys deny any mortgage fraud. Her representatives say federal agencies received mortgage details during her 2022 nomination.

Read at www.theguardian.com