Washington: The US Supreme Court appears likely to reject President Donald Trump’s attempt to immediately remove Federal Reserve Governor Lisa Cook after hearing arguments Wednesday. Solicitor General D. John Sauer, representing Trump, was cautioned by Justice Brett Kavanaugh about the consequences of his claim that Trump may fire Cook or other Fed governors “for cause,” or without a court examination of the validity of that alleged cause.
According to Anadolu Agency, Kavanaugh, one of the court’s six conservative justices, expressed concerns, stating, ‘Your position that there’s no judicial review, no process required, no remedy available, very low bar for cause, that the president alone determines, and that would weaken, if not shatter, the independence of the Federal Reserve.’ In September, Cook filed a lawsuit against Trump, contesting the president’s purported authority to summarily remove her due to unproven claims of mortgage fraud.
Justice Ketanji Brown Jackson questioned the potential harm to the public if Cook were allowed to remain in her position during the case’s proceedings. Sauer argued that there would be a “grievous, irreparable injury to the public perception of the Federal Reserve” if Cook stayed in office. Jackson further pressed for evidence beyond the president’s view.
Cook, who has denied any wrongdoing, is at the center of a larger debate about the Federal Reserve’s autonomy. The case raises concerns about the possibility of a president dismissing a governor who does not align with his monetary policy directives. The issue was underscored by a recent revelation involving Fed Chair Jerome Powell, who is under criminal investigation related to his oversight of a renovation project at the central bank’s headquarters.
Powell, who attended the arguments, has linked the investigation to the Fed’s decision to maintain interest rates, a stance that reportedly angered Trump.