An American Court of Appeals refused on Monday to allow President Donald Trump to dismiss Lisa Cook, who is in the Federal Reserve Governors (Fed), inflicting the White House a setback in an unprecedented legal battle that could move the lines with respect to the independence available for the bank
Central American.
This decision of the Court of Appeals of the Columbia district, in Washington, means that the Trump administration only has a few hours to present a possible appeal before the United States Supreme Court if you hope to prevent Lisa Cook from participating in the Fed monetary policy that begins on Tuesday.
The Department of Justice had asked the Court of Appeal to suspend the decision of a judge who blocked Donald Trump’s procedures last week to eliminate Lisa Cook from his duties to the Fed Governors Council, reproaching Cook of alleged irregularities in statements of real estate loans.
Without “significant warning”
Among the three judges of the Court of Appeal of the District of Columbia, only one, Gregory Katsas, appointed by Donald Trump, voted in favor of the Federal Administration’s request. The other two, Bradley García and J. Michelle Childs, both appointed by former President Joe Biden, voted against.
Justifying this decision, Gregory Katsas said Lisa Cook would have won in the procedure that began to denounce a violation of the process provided by law in such cases. The federal government, he wrote, “does not dispute
Before this court, he did not give him a significant notice or the opportunity to respond to the accusations made against her. “
No comments were immediately obtained from the White House. The decision of the Court of Appeals was issued, while the United States Senate clearly approved on Monday night the appointment of Donald Trump’s economic advisor to the Council of Governors of the Fed. This should allow Stephen to look at participating on Tuesday in the monetary policy of the American Central Bank.
The independence of the threatened Fed?
Donald Trump published at the end of August on social networks a letter that sent Lisa Cook to inform him that he had “enough reasons” to eliminate him from his post.
of the FED governess, an approach perceived as an escalation in the efforts of the US president to weigh on the functioning of the institution, historically independent. Lisa Cook, who denies any representable act, said the
The White House chief had no authority to rule it out.
The Fed said the governor remained in office. The case is expected to be presented before the American Supreme Court, with the underlying issue of the Fed’s ability to establish interest rates without taking into account the wishes of politicians. This independence is considered essential for any central bank in its efforts to maintain inflation under control.
Such a approach had never been initiated by the tenants of the White House, which have traditionally favored, in particular in the 1970s, a non -interventionist approach with respect to the Fed to preserve confidence in monetary policy. Lisa Cook’s loans reported by the Trump administration were hired in 2021, while Cook was academic. She entered the Fed the following year.
Source: BFM TV
