Hearing ends without ruling on ousted Fed governor
President Donald Trump’s federal reserve governor Lisa Cook’s ignition attempt did not end without a decision that listened to the unseen legal struggle from the judge, which means that the US Central Bank policy maker will remain in place for now.
After hearing verbal discussions in a court in Washington DC for two hours, US regional judge Jia Cobb asked Cook’s lawyers to put their arguments in more detail on Tuesday.
The case, which will probably be in front of the US Supreme Court, has consequences for the Fed’s ability to determine the interest rate policy, regardless of the requests of politicians.
The Fed said it would comply with any court decision.
He did not give any symptoms that Cook’s status has changed as a governor board member and was listed as an active member of a few internal committees on the website.
Concerns about the Fed’s independence from the White House may have a fluctuation effect throughout the global economy in determining monetary policy.
After Trump said he would remove Cook, the US dollar stumbled against other major currencies.
Cook filed a lawsuit against Trump and the FED and claimed that he had made a mortgage fraud before joining the Central Bank of the Republican President.
He says it’s an excuse to fire him for his monetary policy stance.
“The cause of the president will not go with the drop of interest rate,” well -known Washington lawyer Abbe Lowell said. He said.
Cook refused to be a fake of mortgage, called the allegations “unfounded and unproven”, but did not explain the basis of this position.
Trump attacked the FED because he did not reduce the rates in the first period of the White House, and when he returned to power in the beginning of 2025, he continued this campaign.
The Central Bank’s ratio policy and the Multibillion dollar renewal project was allegedly using the FED President Jerome Powell.
The Fed ratio has dropped three times in 2024, but since December, Trump’s aggressive reshaping of US trade policy kept them constant, except for the concern that it could increase inflation.
In all these policy decisions, Cook voted with the majority of Powell and the Central Bank’s wage determination committee.
However, the Central Bank is expected to reduce the comparison interest rate by 4.25 percent from 4.25 percent of the current 4.25 percent range at the 16-17 September policy meeting.
The law, which created the FED, says the governors can only be removed for “reason”, but they do not define the term or do not form a lifting procedures.
No president has removed a Fed governor, and the law was never tested in court.
Trump said Cook described separate properties in Michigan and Georgia as primary houses for mortgage applications in 2021, which could allow it to obtain lower interest rates.
Cook said that even if the allegations are true, there would be no justification for lifting, because the alleged behavior took place before being approved by the US Senate and before taking office in 2022.
Trump management lawyers argued in a court on Friday, claiming that the mortgage fraud was enough to remove a Fed governor, no time.
Cook, the President’s ability to abolish officials from other agencies, the reason for the federal laws, when an official is in charge of neglect, evil or inefficiency, and the same standard should be applied for the Fed, he said.
The conservative majority of the Supreme Court temporarily permitted Trump’s officials from other institutions to take a fire brigade.
In a decision published in May, the Court separated the FED from these agencies and showed its unique structure and “different historical tradition”.
The separation of Cook would allow Trump’s fourth election to name the Fed’s seven -member board of directors.
