Federal Judge Weighs Trump's Attempt to Dismiss Fed Governor in Legal Showdown

A crucial court hearing on Friday will determine if a federal judge will temporarily prevent President Donald Trump from removing Federal Reserve Governor Lisa Cook, who is embroiled in a lawsuit against Trump. Cook alleges that the President's claims of her mortgage fraud, which preceded her confirmation, are baseless and serve as a pretense for her dismissal due to her refusal to lower interest rates.

The legal battle, initiated on Thursday by Cook, raises concerns about the independence of the U.S. central bank and may influence the global economy. Historically, no Fed governor has been forcibly removed, and Trump's actions challenge longstanding precedent. As the case unfolds, the outcome may eventually be decided by the U.S. Supreme Court.

Arguments presented by Trump administration lawyers assert that Cook's alleged previous conduct provides sufficient grounds for her removal. Meanwhile, Cook maintains her innocence and contends that even if the allegations were true, they do not meet the legal definition of 'cause' required for dismissal. The Federal Reserve seeks a prompt resolution to eliminate the prevailing uncertainty surrounding the case.

(With inputs from agencies.)