The Trump administration is making efforts to remove Lisa Cook from the Federal Reserve's board of governors ahead of an important interest rate meeting. This follows a legal ruling that reinstated her after Trump sought to fire her.
• The Trump administration filed an urgent appeal to remove Lisa Cook by Monday, before the Federal Reserve's interest rate decision scheduled for next week.
• The attempt to remove Cook comes after a federal judge ruled that her firing was illegal, as the law allows Fed governors to be dismissed "for cause," which was not proven by the administration.
• Cook has faced accusations from Trump regarding mortgage fraud tied to claims of having two primary residences, which she denies, claiming it was a clerical mistake.
• Trump's lawyers argue that even pre-board actions affect Cook's credibility and ability to manage interest rates responsibly.
• If the appeal succeeds, Cook could be barred from participating in the upcoming Fed meeting. If it fails, the administration may bring the case to the Supreme Court.
• The Fed is expected to reduce its benchmark interest rate by a quarter-point next week. Should Stephen Miran, Trump's nominee, be confirmed in time, he could advocate for a half-point cut.
• Despite potential support from Trump's other appointees on the Fed board, there remains concern among some members about high inflation, likely leading to dissent during the vote.
The outcome of the appeal could significantly impact not only Cook's position on the Fed board but also the direction of U. S. monetary policy, emphasizing the complex interplay of politics and economic decision-making.
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