Trump suffers blow in Supreme Court showdown over scandal-hit Fed governor Lisa Cook
The US Supreme Court has rebuked Donald Trump for attempting to fire Federal Reserve Governor Lisa Cook.
The court's decision means Cook will remain in her position until the justices hear arguments during the case in January, according to a Wednesday court order.
In August, Trump fired Cook from the Federal Reserve citing allegations she submitted fraudulent information on mortgage applications.
The Department of Justice launched a criminal investigation in September focusing on Cook's properties in Michigan and Georgia. Officials said they are utilizing grand juries as part of the criminal probe.
Trump-appointed director of the Federal Housing Finance Bill Pulte claimed in August that Cook engaged in mortgage fraud.
Cook’s lawsuit against the administration claims Trump’s attempt to fire her was against the law. She has remained in the position despite the president order to fire her since late-August.
The Supreme Court is deferring action on the firing while the DOJ appeals a lower court ruling that states Cook would likely win her lawsuit. There were no dissenting justices for the order.
For the last 10 months, the Supreme Court has sided with Trump over his attempts to gut federal agencies with mass firings. Cook's case symbolizes the Federal Reserves independence from the White House.
The Supreme rebuked Trump's attempt to fire Lisa Cook while litigation over the issue is on-going
Cook faces accusations of mortgage stemming from properties she owns in Michigan and Georgia
Trump cited the mortgage fraud accusations as part of his reasoning for firing Cook
According to the Federal Reserve Act, the president has the authority to remove governors from the Federal Reserve but only for ‘for cause’ regarding evidence of wrongdoing.
The law was put in place to protect independent members of the financial organization from the political agenda of the president or members of Congress.
Initially, Trump asked the court to greenlight his firing of Cook while litigation continues through the lower court.
The court’s decision to deny the firing indicates there was not a majority willing to grant Trump’s request at the moment.
For nearly a year since taking back the White House, Trump has tried to pressure Federal Reserve Chairman Jerome Powell to lower interest rates while trying to wield more influence over the organization.
'Put simply, the president may reasonably determine that interest rates paid by the American people should not be set by a governor who appears to have lied about facts material to the interest rates she secured for herself — and refuses to explain the apparent misrepresentations,' said Solicitor General D. John Sauer in the appeal.
In September, the U.S. Court of Appeals for the D.C. Circuit denied Trump's request for firing Cook by 2-1, leading the administration to appeal towards the Supreme Court.
The Federal Reserve Act says the president has the authority to remove governors from the Federal Reserve but only for ‘for cause’ regarding evidence of wrongdoing
Previously in May, the Supreme Court did allow Trump to move forward with firing two independent members of the National Labor Relations Board and the Merit Systems Protection Board.
