The US Supreme Court ruled that Lisa Cook may currently remain the governor of the federal reserve system, which is a failure for President Donald Trump in his fight against the Central Bank.
In an unsigned order, the court rejected Trump’s request to immediately remove Cook and stated that in January it would hear arguments about its shooting.
Trump, who blew up the Fed because he did not reduce interest rates as much as he would like, said in August that he removed Cook out of claims to the fraud with a mortgage that she denied.
Cook immediately sued, saying that her shooting was illegal, and opened the door for political intervention in an independent Fed. Not a single president tried to remove the governor before, which could only be done “for reason.”
The federal judge arranged her for dismissal as a legal process, which is played out, which the Supreme Court upheated.
In their statement, Cook lawyers said that the decision “rightly allows Governor Cook to continue his role in the federal reserve system, and we are looking forward to further proceedings in accordance with the court decision.”
Meanwhile, the press secretary of the White House Karolin Livitt said on Wednesday a news briefing that the Trump administration is also impatiently waiting for “this case is fully played out in the Supreme Court.”
Cook is part of the board that sets the control interest rate of the federal reserve system, and the decision on Wednesday will allow it to vote at least twice about whether the central bank will continue to reduce the rates.
Trump said that he fired her for lying in a mortgage statement that she submitted before becoming a governor, but Cook appointed on Biden claims that he wants her to leave the position in which direction, which the Fed must take in his monetary policy.
By law, the president can remove the Governor of the Fed for reason ”, but this term is not defined, and there is no procedure for his dismissal.
Cook was not accused of any crimes.
Soon after the start of his second term, Trump blew up the federal reserve for making no deep reductions to interest rates. He argued that lower rates would help reduce inflation, as well as mortgage rates, and went so far that they missed the idea of dismissal of the head of the Central Bank, chairman of Jerome Powell.
After a strong reaction in the market and questions about the legality of the removal of Powell, Trump retreated from this threat, but continued pressure on the Central Bank.
He also took a very unusual step in the appointment of the main economic consultant in the White House, Stephen Miran to temporarily fill the vacancy on the board.
On September 17, the Fed has announced its primary decrease in the rate in almost a year, and many on Wall Schell expect that this year he will do more.
Powell said that the reduction was made mainly in response to fears about the labor market, and not to political pressure, and that the board would rely on the data and internal indications of the economy in order to decide on further reduction. The board will meet at the end of the month and again in December.
The federal reserve system uses its control rate to fulfill its “double mandate” – helping to contain inflation and promote maximum employment. Bides on mortgage loans are not established by the Central Bank and are mainly associated with interest rates of treasury bonds.
