Trump defends decision to fire Fed Governor Lisa Cook, who says she will sue
Washington: US President Donald Trump defended his decision to fire Federal Reserve Governor Lisa Cook, saying Cook had an infraction that was not allowed for a person who is in charge of mortgages.
“We need people that are 100 percent above board. And it doesn’t seem like she was,” Trump said on Tuesday, in response to reporters’ questions at the White House, Xinhua news agency reported.
“We have some very good people for that position,” said Trump, who fired Cook on Monday over allegations that she committed mortgage fraud.
“Cook has indicated through her personal attorney that she will promptly challenge this action in court and seek a judicial decision that would confirm her ability to continue to fulfill her responsibilities as a Senate-confirmed member of the Board of Governors of the Federal Reserve System,” reported CNBC, citing a Fed statement.
Cook said in a Monday statement: “President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so. I will not resign.”
Cook’s attorney Abbe Lowell said Tuesday that Cook would sue. “His attempt to fire her, based solely on a referral letter, lacks any factual or legal basis. We will be filing a lawsuit challenging this illegal action,” he said.
US Congress curbed the president’s authority to unilaterally fire a Fed governor in the Federal Reserve Act of 1913, which states that the president can only do so “for cause.” But the law does not elaborate on what constitutes “cause.”
Cook was nominated by former US President Joe Biden in 2022. If she comes down, Trump will be able to nominate her replacement and reshape the Fed’s governing board for the next several years, according to media reports.