President Donald Trump fired Federal Reserve Gov. Lisa Cook due to her allegedly committing mortgage fraud.
Trump cited a criminal referral from August 15, where William J. Pulte, director of the Federal Housing Finance Agency, told Attorney General Pam Bondi he had “sufficient reason to believe” Cook made false statements on one or more mortgage agreements.
“For example, as detailed in the Criminal Referral, you signed one document attesting that a property in Michigan would be your primary residence for the next year,” wrote Trump. “Two weeks later, you signed another document for a property in Georgia stating that it would be your primary residence for the next year.”
Last week, Bondi said the DOJ would look into the allegations, placing U.S. Pardon Attorney Ed Martin in charge of the investigation.
Trump explained that Cook could stay on the board of governors because “the conduct at issue exhibits the sort of gross negligence in financial transactions that calls into question your competence and trustworthiness as a financial regulator.”
How about we just END THE FED?!
Trump claimed that Article II and the Federal Reserve Act of 1913 grant him the privilege to make the move.
CNBC thinks Cook’s firing will end up at the Supreme Court:
Trump’s move pushes the Federal Reserve into unchartered territory and will likely lead to a legal clash that could wind up at the Supreme Court.Congress curbed the president’s authority to unilaterally fire a Fed governor in the Federal Reserve Act of 1913, which states that president can only do so “for cause.” While the law does not elaborate on what constitutes “cause,” it has historically been understood to mean serious concerns about an official’s ability to continue serving.
Yeah…I think mortgage fraud allegations fall under “for cause.”
The Federal Reserve Board of Governors has seven members, appointed by the president and confirmed by the Senate. They serve 14-year terms.
Former President Joe Biden appointed Cook in 2022.
The board “regulates banks, contributes to the nation’s monetary policy, and oversees the activities of Reserve Banks.”
[Featured image via Federal Reserve]
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