Lawyers for the administration told a court it should be “highly deferential” to the president when it comes to firing a Federal Reserve governor “for cause.”
The Justice Department said President Trump had sufficient cause to dismiss Lisa Cook, a Federal Reserve governor, over allegations that she had engaged in mortgage fraud, even though she has not been charged with any wrongdoing.
President Trump’s effort to oust the Federal Reserve governor has kicked off a landmark legal battle, one that will have far-reaching consequences for the institution’s independence.
The Supreme Court has said the Federal Reserve Board’s independence warrants protection. President Trump’s effort to fire a member will test that commitment.
Trump’s move to fire a Federal Reserve governor threatens the independence of the central bank. Its autonomy is not lost, but three institutions must act.
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