The US Supreme Court, Trump's unfavorable decision: Lisa Cook will be able to remain governor of the federal reserve at least until 2026
Donald Trump. Credit Line: Mandel Ngan / AFP / Profimedia
The US Supreme Court on Wednesday refused to allow President Donald Trump to immediately dismiss Lisa Cook at the Federal Reserve (FED), a decision that represents an obstacle to Trump's efforts to exercise more control over the US Central Bank.
Trump announced on August 25 that he dismisses Cook from the Fed Governors Council, invoking charges that, before joining the central bank in 2022, he falsified documents to obtain favorable conditions for a mortgage. Her mandate was to expire in 2038, reports Bloomberg, quoted by Agerpres.
Blocking Cook's dismissal, the judge found that his alleged dismissal probably violated the law of the federal reserve, which allows the dismissal of a Fed governor only for deviation in office, as well as Cook's rights to a fair trial under the fifth amendment of the US Constitution. The charges of Mortgage Fraud against Cook refers to actions prior to his confirmation in the Senate in 2022.
The order issued on Wednesday by the Supreme Court means that Lisa Cook can remain in office, at least until the judges are pronounced after hearing the arguments in the file, in January.
Trump has decided to dismiss the Federal Reserve Governor, Lisa Cook
At the creation of the FED in 1913, the US Congress adopted a law called the Federal Reserve Law, which included provisions to protect the central bank from political interference, imposing that governors be dismissed by a president only “for justified reasons”, although the law does not define the term and does not establish procedures for dismissal. The law was never tested in court.
The Cook case has a very high stake, because the Fed independence from the White House has been considered historically to be essential for its role in maintaining economic stability. The case has ramifications on the FED capacity to establish interest rates without taking into account the desires of politicians, largely considered to be essential for the ability of any central bank to function independently to perform tasks such as maintaining inflation.
