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Trump officials ask Supreme Court to allow firing of Fed governor

The Lisa Cook case is one of a trio before the high court that will be a major test of the president’s assertion of sweeping authority over the economy and federal spending.

Lisa Cook, during a nomination hearing in 2023. (Anna Rose Layden/Bloomberg)

Lisa Cook, during a nomination hearing in 2023. (Anna Rose Layden/Bloomberg)

The Trump administration asked the Supreme Court on Thursday to allow it to fire Federal Reserve governor Lisa Cook, an unprecedented move that would give the president greater power over the central bank and its unparalleled role in steering the U.S. economy.

Cook participated in a two-day Federal Reserve meeting this week where the central bank cut interest rates by a quarter percent amid signs of a softening labor market. Cook voted to lower the rate.

President Donald Trump accused Cook of mortgage fraud — a charge she denies — and has sought her dismissal. The Justice Department is investigating but no charges have been filed. The Washington Post has obtained documents that raise questions about the mortgage fraud accusations.

Cook has contended her removal was illegal and a pretext for Trump to have a Fed board that would accede to his wishes to lower interest rates.

“The President lawfully removed Lisa Cook for cause,” Kush Desai, a White House spokesman, said in a statement Tuesday. He added the administration “looks forward to ultimate victory on the issue.”

If the high court decides to hear the case on Cook’s firing, it will be one of a trio of current cases in which the high court will decide whether to greatly expand the president’s power of the economy and federal spending.

The Supreme Court has already said it will hear on an expedited basis a case over the legality of Trump’s sweeping tariffs. Arguments will be held at the beginning of November and a decision is likely to come before the end of the term next summer.

The high court is also grappling with an emergency appeal by the Trump administration, which is asking the justices to allow it to freeze billions of dollars in foreign aid budgeted by Congress. The case is a significant test of Trump’s bid to exert more control over government spending. A ruling could come at any time.

A divided federal appeals court on Monday night found Cook can keep her job, ruling against the Trump administration and its last-minute push to remove her ahead of the central bank’s key meeting this week on setting interest rates.

The three-judge panel said Trump violated Cook’s rights by not giving her a chance to defend herself against the accusations.

“The government does not dispute that it failed to provide Cook even minimal process — that is, notice of the allegation against her and a meaningful opportunity to respond — before she was purportedly removed,” the majority wrote in the 2-1 ruling.

Judges Bradley N. Garcia and J. Michelle Childs, both Biden appointees, ruled against the Trump administration. Judge Gregory G. Katsas, a Trump appointee, dissented.

Katsas wrote that a federal judge was wrong to grant Cook an injunction against her removal on grounds that the alleged mortgage fraud occurred before she was nominated to the Fed. He also said Cook did not have a right to due process.

“Both holdings are mistaken, and the equitable balance here tips in favor of the government,” Katsas wrote.

Author: Justin Jouvenal

Source: The Washington Post

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