Trump Seeks Permission to Fire Lisa Cook Ahead of Fed Meeting
The Trump administration has asked the District of Columbia Court of Appeals to immediately stay the first-instance court ruling blocking the firing of Fed Chair Lisa Cook. The Justice Department is seeking a swift decision—ideally before Monday—so the firing can take effect before the Fed's September 16-17 rate-setting meeting. If granted, Cook could potentially be excluded from voting.
Cook's legal team has denied the request. Attorney Abbe Lowell warned that an administrative stay could encompass next week's FOMC vote and destabilize markets. Cook also filed a motion to file a follow-up response to the request for a longer stay.
Previously, U.S. District Judge Jia Cobb blocked the removal attempt. She ruled that the President likely lacked a "legitimate cause" under the Federal Reserve Act—beyond allegations targeting Cook's pre-employment behavior—and that due process rights were likely violated because the firing notice was sent via social media. Cook was allowed to remain in office while the matter unfolded.
The background to this case is an allegation by FHFA Director Bill Pulte that Cook contrived mortgages claiming more than one "primary residence" in 2021. Cook denies this. The government believes there is a strong chance of an appeal and is prepared to take the case to the Supreme Court if necessary. (ayu)
Source: Newsmaker.id
