US Court Denies Trump's Bid to Fire Cook From Federal Reserve board

US Court Rejects Donald Trump's Bid: In a significant development, the US court rejected Donald Trump's bid to fire Lisa Cook, a Federal Reserve governor. This decision of the US court of appeals for the District of Columbia circuit means that Cook can still be the Fed head of its policy meeting for the time being.   

Donald Trump faced a major setback when the US appellate court overturned one of his decisions. On Monday, the court stopped Donald Trump from firing Federal Reserve Governor Lisa Cook from the post. The appellate court, while giving its verdict, said that Lisa Cook will continue to be the governor of the Federal Reserve for the time being. This decision means that Cook will be able to continue her responsibilities.

Donald Trump will not be happy with this decision because it directly means that Lisa Cook will be able to attend the Fed's policy meeting, where a cut in US interest rates is expected. Notably, this is the first time in the history of America that an American President has tried hard to remove a central governor.

About the Whole Issue

Donald Trump tried to fire Lisa Cook in August by accusing her of mortgage fraud. Trump's close aide William Pulte had accused Lisa of misrepresenting properties in her mortgage applications, which could have allowed her to get lower interest and higher credit. Cook has denied this allegation and said that this is a completely political attack because she did not agree with Trump on policy issues.

The Trump administration argued that Lisa Cook's removal would strengthen the integrity of the Federal Reserve. Cook's lawyers responded that removing Cook before the Fed meeting could affect the global market. Reacting to it, the Trump administration's lawyers directly said that the President has extensive authority to fire the Fed governor and the courts do not have the power to review these decisions. The appellate court, while giving its verdict, said that all the allegations were before Lisa Cook took over the Fed post, so they do not fall under the category of legal reasons. The decision to remove Cook in an emergency did not even give her a chance to respond, which is a violation of the judicial process. Saying this, the court stopped her dismissal.

About Lisa Cook?

Lisa Cook is the first black female governor of the Fed. She was appointed on May 2022 and is an economist. Lisa has been a Truman Scholar and graduated in Philosophy, Politics and Economics from Oxford University as a Marshall Scholar in 1988. In 1997, she also received a doctorate in economics from the University of California.