|
The notice of appeal came hours after U.S. District Judge Jia
Cobb handed down the ruling. The White House has insisted Trump,
a Republican, has the right to fire Cook over over allegations
raised by one of his appointees that she committed mortgage
fraud related to two properties she bought before she joined the
Fed.
The case could soon reach the Supreme Court, where the
conservative majority has allowed Trump to fire several board
members of other independent agencies but has suggested that
power has limitations at the Federal Reserve.
Cook's lawyers have argued that firing her was unlawful because
presidents can only fire Fed governors for cause, which has
typically meant poor job performance or misconduct. The judge
found the president's removal power is limited to actions taken
during a governor’s time in office.
Cook is accused of saying that both her properties, in Michigan
and Georgia, were primary residences, which could have resulted
in lower down payments and mortgage rates. Her lawsuit denied
the allegations without providing details. Her attorneys said
she should have gotten a chance to respond to them before
getting fired.
Trump has repeatedly attacked Fed Chair Jerome Powell for not
cutting the short-term interest rate the Fed controls more
quickly. If Trump can replace Cook, he may be able to gain a 4-3
majority on the Fed’s governing board.
No president has sought to fire a Fed governor before.
Economists prefer independent central banks because they can do
unpopular things like lifting interest rates to combat inflation
more easily than elected officials can.
Cook is set to participate in a Fed meeting next week. The
meeting is expected to reduce its key short-term rate by a
quarter-point to between 4% and 4.25%.
All contents © copyright 2025 Associated Press. All rights
reserved |
|
