Lisa Cook's Lawyers: No Legal Basis for Trump to Fire Her
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- Lisa Cook's lawyers filed legal arguments asserting she cannot lawfully be fired, contending there is "no legitimate basis for removal" on the mortgage claims Trump has cited as cause
- President Trump is pursuing new avenues to dismiss Cook from the Fed board after a prior attempt to remove her on "for cause" grounds was rejected
- The Supreme Court previously ruled against Trump's earlier effort to fire Cook last year over the same mortgage-related allegations
- Lisa Cook, a Biden appointee to the Federal Reserve board of governors, is publicly denouncing the renewed removal threat and the underlying mortgage fraud claims
Why it matters: The Federal Reserve's independence hinges on whether a president can dismiss a governor over personal mortgage allegations rather than policy performance or misconduct in office. With the Supreme Court already blocking one removal attempt, the outcome of Cook's legal challenge will set the threshold for presidential power over the central bank — and every future Fed appointee's job security.
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