Fed. Reserve Governor Lisa Cook Is Pushing Back on Pres. Trump Attempting to Fire Her With A Lawsuit

 

Cook has not been tried, indicted or convicted.

By Mona Austin 

(TSN): Most people probably were not aware of the existence  of the Federal Reserve Board of Governors or heard of its leader, Lisa Cook. 

Bill Pulte, the Trump-appointed director of the Federal Housing Finance Agency (FHFA), is  accusing Cook of housing fraud. He alleges she is claiming two different properties—as separate "primary residences" on mortgage applications—to secure more favorable loan terms.

Pres. Donald Trump wants her to resign. 

In a bold and almost immediate act of self-defense Cook said she would  sue, which is a legal fight that may end up in the hands of the U.S. Supreme Court. The Federal Governor role is a 14-year appointment that can not be vacated without cause. Her attorney, Abbe Lowell, said the firing is illegal, baseless, and lacks due process. 

It is no secret that the president wants to get rid of the Chairman of the Fed, Jerome Powell who he has publicly pressured to drop interest rates. Powell can only be fired by Congress. 

The Federal Reserve is an independent, non-partisan operation.  Interference by a president has never happened before. It is not known why or how Cook became a target for dismissal. Cook is the first Black woman appointed to the Fed’s Board of Governors. Some critics argue Trump is targeting  and other Black women  officials due to racism.  Michael Wolff alleges in a Daily Beast article that  Trump has repeatedly called them derogatory terms (e.g. “fat Black women”).  Others think it is moreso because Trump aims to take over the Fed. With Cook gone there will be 4 -3 voting advantage in getting the Fed to lower interest rates. 

The president said  in an Oval Office presser that he should  be able to do what he  wants in an increasingly more authoritarian tone. 

White House Economic Advisor Kevin Hassett believes Trump has unequivocal authority to fire Cook. 

 

"The president absolutely has the authority to fire a fed governor for cause and I think the accusations are serious." 

 

He says Cook should go on leave until the accusations are resolved. 

 

"The fact that she is not doing that suggests that she is partisan and is trying to make a partisan stance which is contrary to the independence of the Fed."

 

He told reporters that it is his unde4standing that the investigation of Cook has been turned over to the Justice Department. 

Lisa Cook was appointed under Pres. Joe Biden in 2022.  Powell was appointed by Trump in 2018.