Trump accused of using mortgage fraud allegations as ‘weapon of choice’ to attack Fed | Federal Reserve

Donald Trump was accused of having exercised unconfirmed mortgage allegations as his “weapon of choice” to attack the independence of the Federal Reserve, as governor of the Central Bank, continues the president about his candidacy to dismiss her.

On Friday, in court, the lawyers of Lisa Cook argued that it had been dismissed without notice or “cause” required to withdraw a governor from the Fed. Cook learned of his withdrawal from the board of directors via a position on social networks, they said.

US district judge Jia COBB supervises the case, which should ultimately be decided by the Supreme Court. Although this goes before the courts, Cook is looking for a temporary ban order against Trump’s attempt to reject it “immediately” from the Fed committee.

COBB passed on Friday’s hearing to question the lawyers on what they believe to constitute as “cause” and “pretext” for the case.

Abbe Lowell, Cook’s lawyer, said Trump and his ally Bill Pulte, director of the Federal Housing Finance Agency, dismissed her after accused mortgage fraud. Pulte, using her access to mortgage files, said Cook illegally said she had two main residences to get a better mortgage.

Lowell described the attack on the “weapon of choice of administration” after trying to accuse the Fed chair, Jerome Powell, fraud on recent renovations to the Fed. He stressed that Trump was vocally opposed to Fed policies on interest rates, even if the central bank is explicitly and historically a non -political institution. He quoted a recent quote from Trump, who at a meeting of the cabinet said on Thursday: “We will have a majority very soon, and it will be great.”

“These are not independent questions in this case,” said Lowell. “If all we have is a tweet, and he says” could “,” perhaps “,” could “,” perhaps “,” potentially “-and there is no notice, there is no opportunity [to be heard]Everything is based on this dispute by tweet. »»

Meanwhile, the lawyer for the Ministry of Justice, Yaakov Roth, argued that as president, Trump’s ability to withdraw federal officials is wide.

“Congress does not have the power to restrict the abolition of a federal officer,” said Roth. “There is nothing in the president’s statements, contemporary or after, which suggests that [Cook’s] The withdrawal was for any reason other than the reason given in the letter. »»

COBB seemed to suggest that a decision could happen in the coming weeks, after the two parties present their case.

On Friday morning, Trump filed a request to the judge to refuse the request for cook. In its own file, the Fed did not take a position on the case but urged COBB to make a “quick decision”.

Trump wrote Cook on Monday, telling her that he was withdrawing her from his “immediately immediately” position, based on the allegation of one of her allies that she had obtained a mortgage in a second home that she has badly described as her main residence.

The president has spent months attacking the Fed, where most political decision -makers – of which Cook – have so far challenged his calls for declines of interest. He spoke of quickly building “a majority” on the board of directors of the Central Bank, questioning the future of its long -standing independence from political surveillance.

The dismissal Cook, whose term should not expire before 2038, would allow Trump to appoint a replacement. But she argued that the president had “no authority” to remove it.

“An allegation not based on private mortgage requests submitted by Governor Cook before his confirmation from the Senate is not [cause]”, His lawyers argued in the complaint.” The letter from President Trump claiming that the governor of dismissal Cook did not quote the appropriate cause to abandon him from the Council of Governors. »»

The White House said Thursday that Cook was “crediblely accused of lying” by the administration. But the accusations are not confirmed, and his lawyers said that Trump and his officials had not explicitly alleged an error on his mortgage documents was intentional.

This occurs while the Fed is preparing to resume rate drops next month, although not on the scale or at the rate that Trump has demanded on several occasions – and his chair, Jerome Powell, warned that the prices of the president and the repression of immigration have disrupted the global economy and overthrew the American workforce.