Lisa Cook to remain at Fed

The post Lisa Cook to remain at Fed appeared on BitcoinEthereumNews.com.

A federal appeals court has blocked Donald Trump’s attempt to fire Federal Reserve Governor Lisa Cook. This is the first instance the president has pursued such action since the central bank’s founding in 1913. The ruling is a significant legal rebuke to a president who has sought ever greater control over the central bank. The decision came less than a week before a closely watched policy meeting of the Federal Reserve, at which officials are expected to vote on whether to cut interest rates for the first time this year. While Cook remains sidelined, the court preserves the status quo structure of the seven-member Fed Board of Governors that influences U.S. monetary policy. The case has attracted interest from across the ideological spectrum, since it deals with both the independence of the Federal Reserve and constraints on presidential authority. Court upholds protection under law In a 2-1 decision, the D.C. Circuit Court of Appeals sided with Lisa Cook and barred Mr. Trump from removing her from his board at the Federal Reserve. In a majority opinion, Judge Bradley Garcia and Judge Michelle Childs wrote that the court had issued an order in which they emphasized that Cook had been deprived of fundamentally fair procedures. Under that decision, Cook had never been served with a complaint or allowed to defend herself, and all rights in trust were awarded by law. At the heart of the case is a provision in the Federal Reserve Act, which states that governors may only be removed “for cause”, such as serious misconduct or an inability to serve. The court noted that the allegations against Cook stemmed from a 2021 mortgage application, filed before she joined the Fed in 2022, and therefore did not meet the legal threshold for dismissal. One Trump appointee, Judge Gregory Katsas, disagreed with the ruling.…