Trump asks Supreme Court to uphold his firing of Federal Reserve Governor Lisa Cook

Washington – President Trump appealed to the Supreme Court on Thursday seeking to dismiss the governor of the Federal Reserve Lisa Cook within the Independent Council which can increase or reduce interest rates.

This appeal “implies another case of inappropriate judicial interference with the dismissal authority of the president – here, an interference with the authority of the President to withdraw the members of the Council of Governors of the Federal Reserve for good,” wrote General D. John Sauer.

The appeal is the second this month asking the court to give Trump a new broad power over the economy.

The first, to be heard in November, will decide whether the president will be released to impose important import taxes on products in this country.

The new case could determine if it is free to redo the board of directors of the federal reserve by removing a man named Democrat who, according to him, may have violated the law.

Trump lawyers argue that Fed governor has no legal right to challenge the president’s decision to dismiss her.

“In simple terms, the president can reasonably determine that the interest rates paid by the American people should not be fixed by a governor who seems to have lied to the facts of equipment to the interest rates she has assured for herself – and refuses to explain the false apparent declarations,” said Trump’s lawyer.

This week, Stephen Miran, one of Trump’s best economic advisers, was confirmed to serve a temporary mandate in the Federal Council of the Seven Members Reserve. He joined two other people named Trump. If Cook is ousted, Trump may soon have a majority.

The president rubbed shoulders with the Board of Directors of the Federal Reserve for having maintained high interest rates to combat inflation, and he threatened the chairman of the board of directors of the late Jerome Powell, even if Trump appointed him to this position in 2018.

But last month, Trump turned his attention to Cook and said he was able to fire her.

The Congress wrote the Federal Reserve Act of 1913 with the intention of giving the Central Bank of Directors a certain independence of the current policy and the president.

Its seven members are appointed by the president and confirmed by the Senate, and they serve 14 -year -old terms, unless “withdrawn for the president’s cause”.

The law does not define which amounts cause.

President Biden appointed Cook to a temporary mandate in 2022 and a complete mandate a year later.

In August, however, Bill Pulte, director of Trump of the Federal Housing Finance Agency, claimed that Cook committed mortgage fraud when she contracted two housing loans in 2021. One was $ 203,000 for a house in Ann Arbor, Michigan, and the second was $ 540,000 for a condo in Atlanta. In both cases, he said he signed a loan document saying that the property would be his main residence.

As a rule, borrowers obtain a better interest rate for a primary residence. But lawyers say that accusations of mortgage fraud are extremely rare if the borrower makes the regular payments required on the loan.

About 30 minutes after Pulte published his allegations, Trump posted on his social media site: “Cook must resign. Now !!!”

Cook did not respond directly to allegations, but her lawyers reported information that said she told the lender that her Atlanta condo would be a holiday home.

Trump, however, sent a letter to Cook on August 25. “You can be deleted, at my discretion, for good reason”, citing the law and the reference of Pulte. “I determined that there is a sufficient cause to withdraw from your position,” he wrote.

Cook filed a complaint to challenge the decision. She argued that allegation should not be caused under the law, and she had not received an audience to contest the accusations.

American district judge Jia Cobb, a person named from Biden, agreed that he made a “strong demonstration” that the dismissal was illegal and blocked her withdrawal.

She declared that the congress wrote the provision “for the cause” to punish “embezzlement in office”, and not for the conduct of its appointment prior to that. She also said that Cook was denied a “regular procedure” because it had not been heard.

The American Court of Appeal in Washington, by a 2-1 vote, refused to raise its order on Monday.

The judges Bradley Garcia and J. Michelle Childs, both named Biden, said that Cook had been denied “a very minimum process – that is to say an opinion of allegation against her and a significant opportunity to respond – before she was allegedly removed.”

Judge Gregory Katsas, a named against Trump, is in dismen. He said the dismissal “for the cause” was broader than the fault in office. This means that the president can withdraw an officer for “a cause relating to” their “capacity, physical form or competence” to occupy the office, he said.

And because a government position is not the ownership of office holders, they do not have the right to “regular procedure” to challenge their dismissal, he said.