Trump administration asks U.S. Supreme Court to allow president's firing of Federal Reserve Governor Lisa Cook

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Trump administration asks U.S. Supreme Court to allow president's firing of Federal Reserve Governor Lisa Cook

The Trump administration has asked the U.S. Supreme Court to intervene and allow President Donald Trump to remove Federal Reserve Governor Lisa Cook. The move comes after a federal appeals court ruled that Cook could continue serving on the Federal Reserve board, despite Trump's allegations of mortgage fraud against her. On Monday, a panel of the DC Circuit Court of Appeals ruled 2-1 that Cook's due process rights were violated when she was fired without a formal opportunity to respond to the allegations. The court's decision allows Cook to participate in the Federal Reserve's crucial meeting scheduled for Tuesday, where the key interest rate is expected to be cut from about 4.3% to 4.1% . Trump initially fired Cook on August 25, citing constitutional authority and the Federal Reserve Act of 1913. He accused her of falsifying bank records to obtain favorable mortgage terms. However, Cook has denied the allegations and filed a lawsuit against Trump, arguing that he had no authority to fire her . The appeals court's decision has sparked concern among legal scholars and economists, who fear that it could erode the Federal Reserve's independence. Economists prefer independent central banks because they can make unpopular decisions, such as raising interest rates to combat inflation, without political pressure . Separately, the Senate confirmed Stephen Miran, a Trump adviser, to the Federal Reserve board on Monday. Miran's appointment is Trump's first tangible imprint on the institution in his second term and could grant him unusual influence over a central bank member . The Trump administration is expected to quickly turn to the Supreme Court in a last-ditch bid to unseat Cook. However, the court's decision to hear the case and its eventual ruling could have significant implications for the Federal Reserve's independence and the broader U.S. economy.