Trump Administration’s Attempts to Fire Fed’s Cook Head to Supreme Court

Last week, the Trump administration asked the Supreme Court to immediately allow President Trump to fire Federal Reserve Governor Lisa Cook while the case against her continues in an appeals court. Chief Justice John Roberts asked for a response from Cook by September 25, and arguments in the case will be held on November 5.

In response, Cook’s lawyers filed a brief, arguing that “temporarily removing her from her post would threaten our nation’s economic stability and raise questions about the Federal Reserve’s continued independence – risking shockwaves in the financial markets that could not easily be undone,” according to Banking Dive.

The Trump administration charged that Cook made false statements on two different mortgage applications, and has referred the case to the Justice Department to investigate whether Cook should be charged with a crime. Ballard Spahr noted that the District Court and D.C. Circuit Court ruled Cook’s firing illegal, as those mortgage applications occurred before she joined the Fed.

The New York Times noted that while the Supreme Court has allowed the President to fire leaders of other agencies without stating a reason, the Fed may be uniquely protected from presidential involvement. Trump stated that Cook’s “deceitful and potentially criminal conduct in a financial matter” would produce a general lack of confidence in her.

“That the Federal Reserve Board plays a uniquely important role in the American economy only heightens the government’s and the public’s interest in ensuring that an ethically compromised member does not continue wielding its vast powers,” wrote Solicitor General John Sauer.

Cook’s lawyers argued that her firing lacked due process, stating that Trump fired her in a social media post, thus constituting insufficient notice. However, Sauer noted that the President “notified Cook of the charges against her and waited five days for her to respond before removing her.”