Supreme Court Justices Appear Skeptical of Trump’s Firing of Fed Governor Lisa Cook

Supreme Court justices appear skeptical of the Trump administration’s claim that it would suffer irreparable harm without the immediate removal of a Federal Reserve governor, Lisa Cook, who is fighting her attempted firing over allegations of mortgage fraud.During nearly two hours of oral arguments on Wednesday, some justices expressed concern about what the firing could mean for the future of the independent central bank and how it could disrupt financial markets.Justice Ketanji Brown Jackson asked what irreparable harm the president would suffer if Ms. Cook, who was appointed to her position by President Biden, stayed in office while the issue played out.“We assert grievous irreparable injury to the public perception to the Federal Reserve of allowing her to stay in office,” the Trump administration’s solicitor general, D. John Sauer, replied.Ms. Cook’s attorney, Paul Clement, argued that she wasn’t given a chance to contest the firing and she had not committed gross negligence. At worst, he argued, Ms. Cook had made a mistake on a mortgage document. He added that Ms. Cook filed additional paperwork with the bank clarifying the mortgage was for a vacation home.Justice Brett Kavanaugh raised a concern that Ms. Cook’s firing could open the door for turning Fed governor jobs into at-will positions by future presidents. “Once these tools are unleashed, they’re used by both sides and usually more the second time around,” Justice Kavanaugh said.Justice Amy Coney Barrett brought up concerns raised in legal filings by economists that there could be a recession if Mr. Trump is successful in firing Ms. Cook and weakening the independence of the Fed.The Supreme Court has given Mr. Trump broad authority to fire other federal appointees but has cautioned that the Fed is unique. Ms. Cook’s case gives the court a chance to clarify the independence of the central bank and the president’s right to fire governors.President Trump has been highly critical of the Federal Reserve and its chairman, Jerome Powell, for not lowering interest rates faster. Ms. Cook and Mr. Powell both attended Wednesday’s oral arguments.Mr. Trump attempted to fire Ms. Cook on August 25 after he and members of his administration accused her of committing mortgage fraud, citing documents related to two properties Ms. Cook allegedly claimed as primary residences. Ms. Cook has denied the claim and has not been charged with any crime.Ms. Cook argued her removal was for political reasons and not “for cause” as required. She says she was not given due process in fighting the allegations.A district court judge blocked Ms. Cook’s immediate firing and the U.S. Court of Appeals for the District of Columbia Circuit later ruled that it would not remove Ms. Cook because she was not given the proper amount of time to respond to the presidency’s accusations. President Trump then appealed to the Supreme Court.It is unclear when the justices will release a decision but the court is due to go onto a month-long break next week.

Supreme Court Justices Appear Skeptical of Trump’s Firing of Fed Governor Lisa Cook

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