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Lisa Cook joined the Board of Federal Reserve in May 2022 and became the first black female governor of this board.
Former US Federal Reserve Governor Lisa Cook has filed a case against President Donald Trump in the court. Trump removed him from the post of Governor of Federal Reserve by Trump. Lisa Cook told the court that Trump’s decision to remove him is wrong and illegal.
He has also included Federal Reserve Chairman Jerome Powell in the case. Trump has long been pressurizing the Federal Reserve to reduce interest rates (loan and savings rate). Cook is in a team of seven people that fix interest rates in the US.
Cook’s lawyer Abe Lowell said- Trump’s attempt to remove cook is wrong. The law of the Federal Reserve states that the governor needs a solid reason to remove and the allegations without proof in the old loan paper of the cook are not a solid reason.
Trump removed the post 3 days ago
Trump removed Lisa Cook from his social media platform Truth social information. Lisa Cook was appointed in 2022 by the then President Joe Biden. He said- Lisa Cook is being removed from the Board of Governors of the Federal Reserve with immediate effect.
Mor gauge removed after accusations of fraud
He was recently accused of Morgay Fraud (fraud in home loan). The allegations were made by Bill Pulte, director of Federal Housing Finance Agency (FHFA), who is considered a critical supporter of Trump and a critic of Federal Reserve Chairman Jerome Powell.
- Bill Pulte alleges that in June 2021, Lisa Cook bought a property in Michigan and described it as his principal residence i.e. the main house in the 15 -year morgue agreement.
- A month later, in July 2021, Cook bought another property in Atlanta, Georgia and described it as his main home in a 30 -year agreement.
- The loan for primary residence is low in interest rates, and taking advantage of such claims can be considered a morgue fraud.
- Pulte said- ‘How can a woman who is lying to save her interest, how can she take responsibility for controlling interest rates?’
Trump sought resignation from Lisa Cook on 22 August
On August 20, Pulte sent a criminal referral to the Department of Justice (Doj) regarding the matter. After this, justice department lawyer Ed Martin wrote a letter to Fed Chair Jerome Powell demanding the removal of Lisa Cook immediately.
Trump also sought his resignation from Cook and then announced on 22 August that if the cook does not resign, he would dismiss him. Finally, on August 26, Trump removed the cook by implementing his promise.
Lisa Cook said- will not resign under any pressure
Cook had said- I came to know that the FHFA director has created a criminal referral based on my 4-year-old morgue application, which is before I join my fed.
I will not resign under pressure based on any tweet. I am taking questions related to my financial history seriously and will gather the correct information and answer it.
Cook also said that she is collecting facts to respond to these allegations. However, the Trump administration did not wait for his reply.
Lisa joined the Federal Reserve in 2022
Lisa Cook joined the Board of Federal Reserve in May 2022 and became the first black female governor of this board. His current appointment was up to 2038. Earlier, he worked in the Council of Economic Advisors under the administration of former President Barack Obama.
In 2022, economist Lisa Cook was appointed to the Board of Governors of the Federal Reserve.
Does Trump have the right to remove?
Under the Federal Reserve Act 1913, the President can remove a governor only by showing “cause”. Such as severe professional misconduct or malaphson.
Legal experts say that removing Lisa Cook without any concrete evidence or proving fault in court can be legally challenging.
Professor Lev Menand of Columbia Law School and Professor Peter Conty-Brown, Professor of the University of Pennsylvania, said that the allegations against Cook are not yet “enough”, and if the matter goes to court, it could be complicated.
The number of supporters of Trump on the board may be in majority
Removing Lisa Cook will give Trump a chance to appoint another appointment in the seven -member board of Fed. The board currently has two governors – Christopher Waller and Mitchell Boman – Trump.
Recently, another Governor, Adriana Kugler, resigned, for which Trump has nominated his economic advisor Stephen Miraan.
If a supporter of Trump also comes in place of Cook, then the number of supporters of Trump on the board can be in majority, so that he will be able to affect the policies of the Fed.
