A federal judge stopped the attempt of President Trump of Lisa Cook, a member of the Federal Reserve Board of Governors of President Trump late Tuesday night.
American District Judge Jia Cobs admitted that the legal challenge of firing and cook raises “many serious questions”, which the courts have not done before, but said, in this initial stage, Cook “strongly demonstrated” that his expulsion violated the “provision” of the Federal Reserve Act.
The judge explained that the “best reading of the provision” is that the removal base of a fed governor is limited in relation to his behavior in the office and whether they are “honestly and effectively” while carrying out their legal duties.
“” For reason “Thus does not consider removing a person for purely conduct that occurred before in office,” cob It is written in the decision of a 49-page,
Trump announces cookLast month, dismissal, as a “reason” to remove allegations of hostage fraud raised in a criminal referral from the Federal Housing Finance Agency (FHFA).
The move questioned Fed’s freedom for a long time with political influence, although the White House insisted that Trump used to remove cook to use his “legitimate authority”.
August 15 Criminal referral From FHFA Director Bill Pulte, cited by Trump, alleged that Cook understood assets as both primary houses in Michigan and Georgia, in addition to the week in 2021. Pulte later said that he filed A Second criminal referral For Cook, alleging that he represented a third property as a “second house”, despite referring it as investing or rental in other government documents.
Cook’s lawyer, Abbe Lowell, argued in the court papers that Cook could not be fired for hostage information which was available during his confirmation process. The Senate confirmed him in May 2022, and his lawyer stated that the alleged contradictions were revealed in documents sent to both the Senate and the White House.
In a statement to The Hill, Lowell said that the ruling on Tuesday confirms the importance of protecting Fed’s freedom from “illegal political intervention”.
He said, “allowing the President to allow Governor Cook to be removed illegally on illegal and vague allegations would endanger the stability of our financial system and weaken the rule of law,” he said. “Governor Cook will continue to fulfill his oath duty as a Senate-Faith Board Governor.”
Justice Department Indicated in last court filing If the cob was strong, it would have appealed. It was argued that making contradictory statements in financial documents is “more than enough ground” to remove a senior financial officer, even if it could not keep a criminal burden of evidence.
Hill requested a comment from the White House.
