Fed court session ends without ruling on case of Federal Reserve Governor
(MENAFN) A federal court session on Friday ended without a ruling on Federal Reserve Governor Lisa Cook’s request for temporary protection from removal while her lawsuit against President Donald Trump proceeds, according to reports.
Cook’s attorney, Abbe Lowell, challenged the Justice Department’s claim that Trump had legal grounds to remove her based on mortgage fraud allegations. Federal Housing Finance Agency Director Bill Pulte had accused Cook of submitting fraudulent property documents in Atlanta and Ann Arbor, Michigan, before her Fed appointment. Lowell argued that the administration’s reliance on social media statements was insufficient grounds for dismissal, telling Judge Jia Cobb in Washington DC District Court that Pulte’s communications could not justify removing Cook.
Justice Department attorneys countered that the decision to dismiss a Fed governor falls under presidential discretion. Judge Cobb noted the case’s importance, highlighting its potential to set new precedents concerning Federal Reserve governance. Under the Federal Reserve Act, presidents may only remove governors “for cause,” creating a legal limit on executive authority over central bank leadership.
Cook filed her lawsuits Thursday against Trump, the Fed Board of Governors, and Fed Chairman Jerome Powell, claiming the president’s action was illegal and seeking an injunction to maintain her position while the case is adjudicated.
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