Lisa Cook case

NPR - Federal Reserve Governor Lisa Cook's attorney plans to file a lawsuit as soon as today, challenging President Trump’s attempt to fire her. The president claims to have fired her “for cause,” citing allegations of mortgage fraud. Cook says no "cause" exists under the law, and he has no authority to move to fire her. Trump’s claim follows an accusation by Bill Pulte, who oversees the mortgage giants Fannie Mae and Freddie Mac. Pulte has accused Cook of applying for home loans on two properties in different states just weeks apart in 2021, each time stating they would be her primary residence.

Trump has dismissed the threat of a lawsuit and stated he already has someone in mind to fill Cook’s spot on the Fed’s board of governors, NPR’s Tamara Keith tells Up First. The Fed is supposed to maintain independence, but Trump has been pressuring it for months to lower interest rates. The effort to fire Cook could allow Trump to fill the vacancy with someone who would do his bidding. Cook isn't the only person Pulte has targeted, Keith says. He's also accused Democratic Sen. Adam Schiff of California and New York Attorney General Letitia James of claiming more than one property as their primary residence. The Department of Justice is investigating the two.   NBC - Some economists and academics worry that if Trump can follow through with removing Cook, it could jeopardize the independence of the central bank. That, experts said, could erode investors' trust in the soundness of the Fed's decision and could lead to worsening inflation.    The dispute will likely end up in the Supreme Court, which recently issued a ruling that acknowledged the president has wide latitude to control federal agencies but found his ability to make personnel decisions at the Federal Reserve may be more limited.  Read the full story here.