Trump cannot dismiss the Governor of the Lisa Cook Federal Reserve, rules of justice

An American court of appeal refused Monday to allow Donald Trump to dismiss the governor of the Federal Reserve Lisa Cook – the first time that a president continued this action since the Central Bank Foundation in 1913 – in the last stage of a legal battle that threatens the Fed’s long -standing independence.

The decision of the American Court of Appeal for the Columbia district circuit means that Cook can currently stay at the Fed before its political meeting on Tuesday and Wednesday, when it should reduce American interest rates to consolidate a cooling labor market.

The court rejected the Ministry of Justice’s request to suspend the ordinance of a judge by temporarily preventing the Republican President from withdrawing Cook, a man named former Democratic President Joe Biden.

The Trump administration is expected to appeal the decision to the United States Supreme Court.

US District Judge Jia COBB judged on September 9 that Trump’s allegations that Cook had committed mortgage fraud before taking office, which Cook denies, were probably not sufficient reasons for dismissal under the law that created the Fed.

When creating the Federal Reserve, the Congress included provisions to protect the Central Bank from political interference. Under the law which created the Fed, its governors cannot be removed by a president “for good”, although the law does not define the term or establish the procedures of referral. No president has ever withdrawn a governor from the Fed, and the law has never been tested in court.

Look | Trump vs Cook:

Trump says that the Governor of the Fed, Lisa Cook, is dismissed. She insists that she remains

US President Donald Trump said in a letter published on his Truth social platform that he suppresses the governor of the Federal Reserve, Lisa Cook, with immediate effect. Cook said that she would not resign and that Trump does not have the power to dismiss her.

Cook, the first black woman to serve as governor of the federal reserve, continued Trump and the Fed at the end of August. Cook said the statements had not given Trump the legal authority to withdraw it and were a pretext to dismiss it for its monetary policy position.

The Trump administration argued that the president has a large discretionary power to determine when it is necessary to withdraw a governor from the Fed, and that the courts do not have the power to review these decisions.

The case has ramifications for the Fed capacity to set interest rates without regard to the wishes of politicians, largely considered as essential to any capacity of the Central Bank to operate independently to perform tasks such as inflation control.

Trump this year demanded that the Fed reduced the rates aggressively, repressing the president of the Federal Reserve Jerome Powell for her management of monetary policy. The Fed, focusing on the fight against inflation, did not do so, although we expect this week to make a reduction.

Look | Powell underlines how Trump is wrong:

Trump is publicly corrected in his face by an American foster chair

US President Donald Trump and the president of the Federal Reserve, Jerome Powell, fought back and forth to journalists today on the cost of renovations from the Central Bank of Washington

This year, the Supreme Court allowed Trump to delete various officials sitting federal agencies which had been created by the congress independent of direct presidential control.

But in a May order in a case involving Trump’s rejection of two democratic members of the federal labor commissions, the Supreme Court indicated that it considered the Fed as distinct from the other branch agencies. He said that the Fed “is a unique structured quasi-private entity” with a singular historical tradition.

The Trump administration in a legal file last Thursday had asked the DC circuit to move quickly so that Trump could remove Cook before the Fed political meeting on Tuesday and Wednesday. Administration lawyers said that allowing the president to shoot the cook “would strengthen, would not decrease, the integrity of the federal reserve”.

Cook’s lawyers in a file in response said that cook’s withdrawal before the meeting would have an impact on the American and foreign markets, and that the public interest of keeping it according to Trump’s efforts to take control of the Fed.