As you may recall, US President Donald Trump announced in the last days of August that he dismissed FED member Lisa Cook on the grounds that she made false statements in mortgage agreements.
Lisa Cook subsequently filed a lawsuit challenging President Donald Trump’s decision to remove her from office. Cook argued that the White House lacked the authority to do so and wanted to keep her position.
As the tension between Trump and Cook continues, the court made a decision that angered Trump.
Accordingly, the US federal court banned the dismissal of FED board member Lisa Cook.
The court thus disrupted Trump’s strategy of securing a majority on the Fed board.
Court Rules in Trump-Cook Tension!
A US District Court has rejected President Trump’s decision to fire Fed member Lisa Cook, ruling that Cook can remain in her position for now.
In issuing the preliminary injunction blocking Cook’s dismissal, U.S. District Court Judge Jia Cobb emphasized that Cook’s retention is critical to the Fed’s independence:
“There is no reason to dismiss a FED member.
The public interest in the Fed’s independence favors Cook’s reinstatement.
The phrase “just cause for dismissal” does not mean that an individual is dismissed solely for conduct that occurred before assuming office.
*This is not investment advice.