Lisa Cook’s lawyer asks justice that his client could “continue doing his job” after his dismissal for Trump.

The governor of the Federal Reserve, Lisa Cook, whom President Donald Trump wants to dismiss, must “continue doing his job” independently, his lawyer argued at an audience in Washington on Friday, August 2. The dispute marks the beginning of the judges in a battle whose result can change the face of the most powerful central bank in the world.

As a last resort, the Supreme Court, a majority conservative, will probably end up deciding in what circumstances the president of the United States can revoke a central banker of the Federal Reserve (Fed), defining what would constitute a valid reason, that the texts do not formally specify. In May, the Supreme Court had given the principle that the FED had a special status that limited the prerogatives of the Executive Power.

A “pretext”

Lisa Cook’s lawyer Abbe Lowell asked an emergency judge who prevented Donald Trump and the Council of Governors from taking measures that probably discard Lisa Cook from his position, “to allow him to continue doing their job.” For the lawyer team at Lisa Cook’s service, the White House is looking for a “pretext” to get rid of a governor who does not intend to obey the president’s mandates in monetary policy matters. According to its statutes, the Fed is an independent institution.

At the beginning of the week, the head of state wrote to Lisa Cook to tell him that she was “revoked with an immediate effect.” First black woman to sit in the Council of Governors of the Fed and appointed in 2022 by former Democratic President Joe Biden, Lisa Cook is accused by the presidential field of having lied to obtain real estate loans at more favorable rates in 2021.

Donald Trump pressure on rates

Lisa Cook has not publicly challenged the lower part of the accusations, for which Donald Trump’s lawyer blames him. His lawyer considers that he has never been given the opportunity to defend himself. His mandate extends until the end of January 2038. If he has to leave, Donald Trump can name his replacement, who will have to be confirmed by the Senate with a republican majority.

Donald Trump wants FED to be much lower interest rates and assumes than wanting to place people who share their views on the economy at the top of the institution.