Federal Reserve Independence at Stake: Lisa Cook Battles Trump's Legal Challenge
Federal Reserve Governor Lisa Cook has asked the U.S. Supreme Court to reject former President Donald Trump’s attempt to dismiss her. Cook argues that this move threatens the Federal Reserve's independence, which is crucial for its function. A federal court previously blocked Trump from removing Cook while her legal challenge is ongoing.
In a pivotal legal confrontation, Federal Reserve Governor Lisa Cook appealed to the U.S. Supreme Court to dismiss Donald Trump's motion to remove her from her position. She contends that such a presidential intervention would jeopardize the independence of the Federal Reserve and destabilize the financial markets.
Trump's allegations of mortgage fraud against Cook have been contested, and a federal judge ruled that these allegations do not satisfy the legal prerequisites for dismissal under the 1913 act governing the Federal Reserve. Cook claims these charges are a guise for her removal due to her monetary policy viewpoints.
Support for Cook has emerged from 18 former economic leaders, including past Fed chairs and Treasury secretaries, urging the Supreme Court to uphold the central bank's autonomy. They argue that removing Cook amid her ongoing legal challenge could erode public confidence in the Federal Reserve's impartiality and disrupt its policy-making functions.
(With inputs from agencies.)
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