Federal Reserve Governor Lisa Cook. (Source: Bloomberg)
The US Supreme Court on October 1 postponed a decision on whether President Donald Trump can immediately fire Federal Reserve Board of Governors member Lisa Cook, instead agreeing to hear oral arguments in the case early next year.
The move means Ms Cook can remain in office while the crucial legal question is decided. The court said it would hear arguments in January, with a decision likely before the end of June.
President Trump has asked the court to allow him to immediately fire Ms. Cook while the case continues in lower courts. The Supreme Court’s move suggests there is no majority to support that request, at least for now.
Under the Federal Reserve Act, the president is limited in removing governors unless “for cause,” meaning there is evidence of wrongdoing. President Trump said he fired Ms. Cook for cause, based on mortgage fraud allegations brought by one of his appointees, Federal Housing Finance Agency Director Bill Pulte. Ms. Cook has denied the allegations.
Since taking office in January, President Trump has pushed for lower interest rates and criticized the Fed for not acting on his wishes. In a statement following the court news, the White House asserted that President Trump “lawfully removed Lisa Cook for cause” and said “we look forward to our final victory after oral arguments before the Supreme Court in January.”
Ms. Cook's lawyers said in a statement that the October 1 decision "is correct in allowing Governor Cook to continue his role on the Fed Board of Governors, and they look forward to further proceedings consistent with the court's ruling."
In an effort to put his stamp on the Fed, President Trump appointed one of his advisers, Stephen Miran, as Fed governor. Next year, Trump will be able to appoint a new Fed chairman when Jerome Powell's term in that role ends.
On September 17, the Fed announced its first interest rate cut of the year. Ms. Cook voted in favor of the decision.
President Trump moved to fire Ms. Cook in late August, prompting her to file a lawsuit in federal court. Ms. Cook argued that President Trump did not have the authority to remove her while she challenged the decision in court. Lower courts ruled in her favor, prompting President Trump to rush the case to the Supreme Court.
The US Congress designed the Fed to be independent of politics.
The Fed decides on interest rates, which in turn affect economic growth. President Trump has repeatedly attacked Fed Chairman Jerome Powell for being too slow in lowering interest rates to stimulate growth.
Despite frequent presidential criticism, Congress created the Fed's seven-member board of governors in 1913 to ensure economic decisions were made independently, free from political pressure.
Ms. Cook’s lawyers emphasized this tradition of independence in their arguments. “A ruling that would allow Governor Cook to be removed from office would threaten to cause serious harm to the U.S. economy,” her lawyers wrote in a September 25 filing.
Source: https://vtv.vn/toa-an-toi-cao-my-hoan-quyet-dinh-ve-viec-sa-thai-thong-doc-fed-lisa-cook-100251002063405397.htm
Comment (0)