President Donald Trump on Wednesday appealed a federal judge’s order blocking him from firing Federal Reserve Governor Lisa Cook while a lawsuit challenging his removal of her continues.
The appeal came a day after U.S. District Court Judge Jia Cobb, in her decision, said, “The public interest in Federal Reserve independence weighs in favor of Cook’s reinstatement.”
Cobb also said that Cook has “made a strong showing” that Trump’s purported removal of her violated the Federal Reserve Act’s requirement that board governors be removed only for legal “cause.”
Trump announced on Aug. 25 that he was firing Cook, who is the first black woman to serve as a Fed governor.
If Cook is ultimately removed from the Fed, Trump would be on track to nominate a majority of the central bank’s board.
A federal judge’s order prohibiting President Donald Trump from dismissing Federal Reserve Governor Lisa Cook while a lawsuit contesting his removal of her is still pending was appealed by the president on Wednesday.
It was appealed one day after U. A. Judge Jia Cobb of the District Court stated in her ruling that Cook’s reinstatement is justified due to the public interest in Federal Reserve independence. “.”.
Additionally, Cobb claimed that Cook had “made a strong showing” that Trump’s alleged dismissal of her went against the Federal Reserve Act’s mandate that board governors be removed only for “cause” that is legally permitted. “,”.
In August, Trump made an announcement. 25 that Cook, the first black woman to hold the position of Fed governor, was being fired.
Bill Pulte, the director of the Federal Housing Finance Agency, accused her of mortgage fraud, which is why the president said he was taking this action.
Cook says he has done nothing wrong. Trump is using Pulte’s allegations as a pretext, according to her lawyers, and her potential removal is a part of the president’s pressure on the Fed to lower interest rates.
Two of the seven governors of the Fed, who are involved in interest rate-setting decisions, have been appointed by Trump.
A party-line vote by the Senate Banking Committee on Wednesday recommended that the full Senate accept Trump’s nominee Stephen Miran for the Fed governor’s seat that was left open by Adriana Kugler’s abrupt resignation last month, prior to his appeal being filed.
Should Cook be fired, Trump would have the opportunity to appoint a majority of the Fed’s board of directors.
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