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I confirm my intention to proceed and enter this websiteIn a legal fight central to the independence of the Federal Reserve, a recent ruling by a U.S. appeals court has temporarily halted the Trump administration’s efforts to remove Fed Governor Lisa Cook.
This decision secures Cook’s seat at the pivotal Federal Open Market Committee (FOMC) policy meeting this Tuesday and Wednesday, although it is widely anticipated that this legal struggle is far from over.
On the eve of the Federal Reserve’s crucial interest rate decision meeting, the U.S. Department of Justice attempted to intervene through an emergency application, requesting the federal appeals court to expedite the removal proceedings, highlighting the urgency of the matter.
However, the appeals court ultimately denied this request, upholding a temporary injunction previously issued by a lower court. This ruling directly thwarted the Trump administration’s plan to remove Cook before the FOMC meeting. The White House is expected to promptly appeal the case to the U.S. Supreme Court.
The legal core of this dispute lies in defining the limits of a U.S. President’s authority to dismiss a member of the Federal Reserve Board. According to the Federal Reserve Act, a president can only remove a Fed governor “for cause.”
Previously, a lower court judge opined that the Trump administration’s basis for removing Cook—allegations of mortgage fraud—might not be sufficient to meet the legal standard required for a “for cause” dismissal.
Although the legal battle continues, Cook will remain in her position at the Federal Reserve until a final ruling is issued by the Supreme Court.
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