A federal judge will hold a hearing Friday in a case that could dramatically reshape presidential authority over the Federal
A federal judge will hold a hearing Friday in a case that could dramatically reshape presidential authority over the Federal Reserve — a traditionally independent institution that has helped steer the U.S. economy through crises for more than a century.
Federal Reserve Governor Lisa Cook has filed for an emergency injunction to block President Donald Trump’s attempt to fire her, citing unproven allegations of mortgage fraud dating back to 2021 — before she was confirmed to the Fed board by former President Joe Biden in 2022, according to The Associated Press.
Her legal team says the move threatens the 112-year tradition of Federal Reserve independence, which economists broadly view as essential for the central bank to make politically difficult decisions — like raising interest rates to combat inflation.
“The unsubstantiated and unproven allegation that Governor Cook ‘potentially’ erred in filling out a mortgage form prior to her Senate confirmation — does not amount to ‘cause,’” her lawsuit argues.
If Trump’s firing is allowed to proceed, it would be the first time a president has ever removed a sitting Federal Reserve governor — and could open the door to politicizing future monetary policy decisions.
While the president cannot legally fire a Fed governor over a policy disagreement — such as whether or not to raise interest rates — the law does allow removal “for cause.
