The Supreme Court preserved an exception protecting the Federal Reserve from presidential removal even as President Trump continued threats against Fed leaders. Trump publicly posted an order demanding Governor Lisa D. Cook step down, citing allegations of mortgage fraud from the FHFA director. Cook rejected the order, asserted statutory protection through 2038, and initiated legal action. The Federal Reserve affirmed it would continue its duties and abide by any court ruling while Cook challenges the president's move. Trump indicated he would also abide by the courts, and Cook's Fed profile remains active on the agency website.
Back in May, when the Supreme Court approved President Donald Trump's decision to fire the leaders of once independent government agencies at his discretion, the conservative justices laid out one sole exception: The Federal Reserve, as the nation's regulator of monetary policy, was to remain untouched. But this hasn't stopped Trump from threatening to fire Fed Chair Jerome Powell and his board of governors-and his efforts reached a frightening, unprecedented breaking point this week.
On Monday evening, Trump posted a letter to Truth Social (naturally) addressed to Lisa D. Cook, a 2022 Biden administration appointee and the first Black woman to serve on the board. Finding "sufficient cause" based upon cocked-up accusations of "mortgage fraud" from Federal Housing Finance Agency Director Bill Pulte, the president illegally ordered that Cook step down from her position, "effective immediately."
Cook responded that evening, noting in a statement that "no cause exists" for her dismissal and that she " will not resign," as she is entitled by Congress to serve on the board until 2038. The next day, Cook's attorney announced that she would sue Trump over this action, and the Fed released a public statement declaring that it would "continue to carry out its duties" and "will abide by any court decision" as Cook challenges the president's interference.
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