Fed governor Cook’s lawyer denounces Trump’s latest attempt to remove her
Donald Trump has spent over a year trying to fire Lisa Cook as he seeks greater control over the central bank and its interest-rate policy.
Federal Reserve governor Lisa Cook's legal representative has criticized President Donald Trump's most recent attempt to remove her from her position, according to a letter obtained by Reuters. Trump has been seeking to dismiss Cook for over a year as he seeks to assert greater influence over the central bank, claiming it is unwilling to reduce interest rates for political reasons.
Cook vehemently denies any wrongdoing and has filed a lawsuit to retain her position. Earlier this month, Trump announced a new inquiry into Cook and formed a three-person committee to hold a hearing. The White House intends to fire Cook if the committee endorses the recommendation.
Abbe Lowell, Cook's lawyer, stated in his letter that the proposed committee members, including White House economic policy advisor Kevin Hassett, demonstrated previous attempts to pressure Cook into taking leave from her office. He added that a hearing with biased members, additional allegations, and an unclear timeline for disclosing any new evidence, without explaining why it was not previously made available, fails to ensure an independent process.
Lowell further mentioned that Cook would not be able to attend a hearing on the scheduled date of November 5, as she will be participating in financial and monetary policy meetings in Europe. The earliest Cook could attend a hearing would be following the Fed's policy meeting on December 8-9, he added.
A Supreme Court ruling earlier this year prevented Trump from arbitrarily firing a Fed governor, emphasizing the importance of maintaining both factual and perceived political independence to carry out its duties. However, the ruling also outlined a process for possible removal if a Fed official is provided a fair opportunity to review the alleged evidence and respond to it.
The White House seems to be pursuing this course of action. The Fed increased its policy rate in September and is anticipated to raise it once more during its final meeting of the year.
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