NBC News - An attorney for Federal Reserve Governor Lisa Cook said they planned to sue President Donald Trump after he threatened to fire her, alleging the president "has no authority" to do so. "His attempt to fire her, based solely on a referral letter, lacks any factual or legal basis. We will be filing a lawsuit challenging this illegal action, ” attorney Abbe Lowell said in a statement.
Roll Call - President Donald Trump fired Federal Reserve governor Lisa Cook, according to a letter posted on his Truth Social platform Monday night, likely teeing up a legal battle over the Fed’s independence and another key nomination fight when lawmakers return to Washington after Labor Day.
Trump’s letter, dated Aug. 25, said he was exercising his authority under Article II of the Constitution as well as the Federal Reserve Act of 1913 to remove Cook “for cause,” justifying the dismissal by claiming that Cook had made misstatements on two mortgage applications.
Those allegations were first raised last week by Federal Housing Finance Administration Director William Pulte, who made a criminal referral to the Justice Department. Pulte said Cook claimed two homes as her primary residence — one in Michigan and one in Georgia.
In his letter, Trump said Cook, an accomplished economist, could not be trusted to help the Fed set interest rates and regulate banks.
“The American people must be able to have full confidence in the honesty of the members entrusted with setting policy and overseeing the Federal Reserve,” Trump wrote. “In light of your deceitful and potentially criminal conduct in a financial matter, they cannot and I do not, have such confidence in your integrity.” ....
Sen. Elizabeth Warren, D-Mass., the ranking member on the Senate Banking Committee, said Trump doesn’t have the power to remove Cook.
“The illegal attempt to fire Lisa Cook is the latest example of a desperate President searching for a scapegoat to cover for his own failure to lower costs for Americans,” Warren said in a statement. “It’s an authoritarian power grab that blatantly violates the Federal Reserve Act, and must be overturned in court.”
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