Dem
47
GOP
53
Donald Trump fired Fed governor Lisa Cook because he is president and presidents can do whatever they want to, the law be damned. The law, in this case, states that Fed governors can be removed only for cause—that is, when they commit some serious offense while in office. Trump's nominal reason is that Cook was alleged to have claimed two homes as her primary residence on her mortgage applications, although that would only be a crime if her intent were to defraud a bank. Having two primary residences is not that unusual. Some people live in one home in the winter and a different one in a different state in the summer. As long as the bank knows this, it is not illegal. She has not been charged with intent to defraud and that certainly hasn't been proven in court. Trump just wants to get rid of her so he can appoint a replacement.
On Tuesday, Federal Judge Jia Cobb, a Joe Biden appointee, said "not so fast." She ruled: "President Trump's stated cause refers only to allegations regarding Cook's conduct before she began serving on the Federal Reserve Board. As discussed above, such allegations are not a legally permissible cause." Consequently, she ordered Cook reinstated until all the appeals have run out.
Cobb noted that Trump didn't address any potential misconduct while Cook was in office, which would be the only grounds for firing her. She also noted that Trump does not claim that Cook failed to carry out her statutory duties or that she lacks the competence or trustworthiness for the office. He merely wants to be rid of her so he can replace her with someone of his own choosing and the law forbids that.
If Trump wins this, then any member of any federal board or agency can be later fired if there is any allegation of any crime in the person's past, even if the person was not indicted and tried for it. Someone claims you jaywalked at age 9? You're fired.
Cook's lawyers took a different angle. They defended the idea that Congress created the Fed as an independent agency precisely so that it did not have to obey the wishes of the current president. They argued that Trump is simply trying to circumvent this restriction he doesn't like in an underhanded way. The judge accepted that and noted that the country's economy could be harmed if the Fed were made subservient to the president's political goals.
The administration has already filed an appeal. (V)