The governor claimed that the president has no power to say goodbye, opening a key legal dispute on the independence of the US Central Bank.
The governor of the Federal Reserve (Fed), Lisa Cookfiled a lawsuit against the president of USA, Donald Trump, After his announcement of dismissal, claiming that the Republican It lacks authority to act that way. Cook argues that the federal law limits the removal of governors of the Fed only to cases of justified cause.
Trump accused Cook of committing Mortgage fraud in 2021a year before entry to the US Central Bank. In response, the governor said that “There are no causes under the law, and (Trump) has no authority” To dismiss her, and her lawyers noted that Trump’s demands lack any process appropriate, base or legal authority ”.
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This case could reach the Supreme Courtwhere recent decisions allowed Trump dismiss officials from other agenciesalthough the Fed could describe for an exception that protects its autonomy against the White House. The independence of the Central Bank is key to monetary policy and It could have global repercussions. After the president’s announcement, the dollar showed Volatility against other currencies.
A FED spokesman indicated that the institution any judicial decision will comply. Meanwhile, the case raises an unprecedented challenge about the limits of the presidential authority and the protection of the independence of the US Central Bank.
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Who is Lisa Cook
Lisa Cook is an American economist and governor of the Federal Reserve (Fed) of the United States. Was appointed by the former president Joe Biden in 2022 and is part of the Central Bank Governing Council.
Cook had an outstanding academic career as Economy professor, with research focused on economic development, monetary policy, technological innovation and economic inequality. In addition, he worked in public policies and published numerous studies on financial economy and growth.
In the Fed, participates in the Decision making on monetary policyincluding interest rates and measures to maintain the country’s financial stability. Its independent role of the Executive Power is key in the context of the Legal conflict with Donald Trump.
Source: Ambito
