The White House is continuing its push to remove Federal Reserve board of governors member Lisa Cook, filing a response in federal appeals court ahead of a 3 p.m. deadline on Sunday.
The brief, filed in the United States Court of Appeals for the D.C. Circuit, argues that it is within President Trump's discretion to remove Cook for cause and that the Fed governor's claim that her due process is being violated is "meritless."
The filing doubled down on the president's arguments, saying that Cook's removal "is a matter of discretion and not reviewable."
"The public and the Executive share an interest in ensuring the integrity of the Federal Reserve, and that requires respecting the President’s statutory authority to remove Governors 'for cause' when such cause arises," the court filing concludes.
In a Saturday filing, Cook's lawyers argued her removal from the Fed would "mark an immediate end" to the precedent of central bank independence from the executive branch. They also claimed that Trump removing Cook "would send a destabilizing signal to the financial markets that could not be easily undone."
"Central banks like the Federal Reserve are independent for a reason: Even the perception of political influence can destroy the investor confidence that is essential for economic growth and stability. And that bell cannot be unrung. Once confidence in the bank’s independence is lost, it cannot easily be regained," Cook's lawyers argued.
Last month, Trump announced that he was removing Cook from her position for cause, citing allegations that she committed mortgage fraud. An Aug. 15 criminal referral from the Federal Housing Finance Agency (FHFA) alleged Cook listed properties in Michigan and Georgia as her primary residences in 2021. A second FHFA referral on Aug. 28 alleges Cook represented a third property as her "second home," despite calling it an investment or rental property in other government documents.
Earlier this month, the Justice Department reportedly opened an investigation into Cook regarding the accusations. The central bank governor has denied the White House's claims and responded to Trump's move to remove her by filing a lawsuit against the administration.
NBC News reported Friday that Cook declared her Georgia residence as a "vacation home" in financial records, contradicting the administration's mortgage fraud allegations.
U.S. District Judge Jia Cobb temporarily blocked Cook's firing on Tuesday, noting that Cook made a "strong showing" that her removal violated the Fed's "for cause" provision. The administration appealed the decision, with Sunday's deadline coming days before the central bank's two-day meeting begins Tuesday.
At the conclusion of the meeting, Fed Chair Jerome Powell will announce whether the central bank will cut interest rates from their current 4.33 percent mark. Markets are expecting a quarter-point cut.
Trump has criticized the Fed for not cutting rates for months, with the president specifically making Powell the subject of his ire. Then, he sought to remove Cook, citing the discretion awarded to him by the Federal Reserve Act of 1913.
The Hill has requested comment from Cook's legal representatives.
The Associated Press contributed to this report.
Source: The Hill - News
