President Donald Trump has taken steps to dismiss Federal Reserve Governor Lisa Cook amid mortgage-fraud allegations, continuing his bid to exert control over the central bank. Drew Angerer/Getty Images
Based on data from CNN
The administration of U.S. President Donald Trump has again asked the federal appellate court to remove Federal Reserve Governor Lisa Cook from office, after weeks of political pressure.
This move comes ahead of the independent central bank’s expected vote on future interest rates. Trump has repeatedly urged the Fed to cut rates while publicly criticizing Fed Chair Jerome Powell.
The filing was submitted to the U.S. Court of Appeals for the District of Columbia ahead of the Sunday deadline at 3:00 p.m. Eastern.
In a statement, Trump said that Cook’s bid to remain in office is unfounded, and concerns about whether she properly disclosed her finances call into question her ability to manage the U.S. money supply honestly, carefully, and impartially.
The law firm Lowell & Associates, which represents Cook, did not respond to a request for comment.
On Saturday, Cook’s legal team filed a motion with the court to dismiss Trump’s motion to remove her, noting that the administration has not provided sufficient grounds for removal. It also stressed that allowing her removal could undermine the independence of the banking system and the country’s economic stability.
“As economists have warned, everyday Americans will ultimately pay the price: higher prices due to higher inflation and higher interest rates that arise when the central bank’s independence is lost”
The Trump administration also said that removing Cook would further undermine confidence in the Fed’s independence and could affect the country’s economic stability.
“The administration described Cook’s bid to stay on the Board as ‘baseless,’ adding that concerns over whether she misrepresented her finances raise questions about whether she can act with honesty, diligence, and impartiality in managing the U.S. money supply”
This case highlights the sharp tension between political considerations and preserving the Federal Reserve System’s institutional independence in the United States.
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