A Federal Reserve spokesperson on Tuesday said the central bank will abide by any court decision in the standoff between Federal Reserve Governor Lisa Cook and President Donald Trump.
The spokesperson said Congress directs governors to serve fixed terms and may only be removed by the president “for cause.”
“Long tenures and removal protections for governors serve as a vital safeguard, ensuring that monetary policy decisions are based on data, economic analysis, and the long-term interests of the American people,” the spokesperson said.
“Lisa Cook has indicated through her personal attorney that she will promptly challenge this action in court and seek a judicial decision that would confirm her ability to continue to fulfill her responsibilities as a Senate-confirmed member of the Board of Governors of the Federal Reserve System. As always, the Federal Reserve will abide by any court decision,” they added.
It’s unclear if Cook was working Tuesday after Trump’s Monday night post that he was removing her from the board. Trump cited unproven allegations of mortgage fraud as the reason for her firing. Cook pushed back that Trump didn’t have the authority to remove her and that she was not resigning.
Source- ABC
