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| Trump faces key legal test in effort to exert control over Federal Reserve | Trump faces key legal test in effort to exert control over Federal Reserve |
| (about 2 hours later) | |
| Fed governor Lisa Cook is seeking a temporary restraining order against the president’s attempt to fire her | Fed governor Lisa Cook is seeking a temporary restraining order against the president’s attempt to fire her |
| Donald Trump’s battle to exert control over the Federal Reserve faces a key legal test today, with a governor of the central bank seeking a temporary block on his extraordinary attempt to fire her. | Donald Trump’s battle to exert control over the Federal Reserve faces a key legal test today, with a governor of the central bank seeking a temporary block on his extraordinary attempt to fire her. |
| Lisa Cook sued the US president on Thursday, with her lawyers describing his attempt to dismiss her as “unprecedented and illegal”, and based on “pretextual” allegations. | Lisa Cook sued the US president on Thursday, with her lawyers describing his attempt to dismiss her as “unprecedented and illegal”, and based on “pretextual” allegations. |
| The case is widely expected to be ultimately decided by the supreme court. While it makes it way through the courts, Cook is seeking a temporary restraining order against Trump’s attempt to “immediately” dismiss her from the Fed’s board. | The case is widely expected to be ultimately decided by the supreme court. While it makes it way through the courts, Cook is seeking a temporary restraining order against Trump’s attempt to “immediately” dismiss her from the Fed’s board. |
| A hearing on the motion was set for 10am in Washington on Friday. The case has been assigned to US district judge Jia Cobb, an appointee of Joe Biden. | |
| Early on Friday morning, Trump filed a request to the judge to deny Cook’s request. In its own filing, the Fed did not take a stance on the case but urged Cobb to make a “prompt ruling”. | Early on Friday morning, Trump filed a request to the judge to deny Cook’s request. In its own filing, the Fed did not take a stance on the case but urged Cobb to make a “prompt ruling”. |
| Trump wrote to Cook on Monday, telling her that he was removing her from her position “effective immediately”, based on the allegation from one of his allies that she had obtained a mortgage on a second home she incorrectly described as her primary residence. | Trump wrote to Cook on Monday, telling her that he was removing her from her position “effective immediately”, based on the allegation from one of his allies that she had obtained a mortgage on a second home she incorrectly described as her primary residence. |
| The president has spent months attacking the Fed, where most policymakers – including Cook – have so far defied his calls for interest rate cuts. He has spoken of rapidly building “a majority” on the central bank’s board, calling into question the future of its longstanding independence from political oversight. | The president has spent months attacking the Fed, where most policymakers – including Cook – have so far defied his calls for interest rate cuts. He has spoken of rapidly building “a majority” on the central bank’s board, calling into question the future of its longstanding independence from political oversight. |
| Firing Cook, whose term is not due to expire until 2038, would enable Trump to nominate a replacement. But she has argued the president has “no authority” to remove her. | Firing Cook, whose term is not due to expire until 2038, would enable Trump to nominate a replacement. But she has argued the president has “no authority” to remove her. |
| “An unsubstantiated allegation about private mortgage applications submitted by Governor Cook prior to her Senate confirmation is not [cause],” her lawyers argued in the complaint. “President Trump’s letter purporting to fire Governor Cook did not cite appropriate cause for removing her from the board of governors.” | “An unsubstantiated allegation about private mortgage applications submitted by Governor Cook prior to her Senate confirmation is not [cause],” her lawyers argued in the complaint. “President Trump’s letter purporting to fire Governor Cook did not cite appropriate cause for removing her from the board of governors.” |
| The White House claimed on Thursday that Cook had been “credibly accused of lying” by the administration. But the accusations are unconfirmed, and her lawyers said Trump and his officials had not explicitly alleged that any error on her mortgage paperwork was intentional. | The White House claimed on Thursday that Cook had been “credibly accused of lying” by the administration. But the accusations are unconfirmed, and her lawyers said Trump and his officials had not explicitly alleged that any error on her mortgage paperwork was intentional. |
| It comes as the Fed gears up to resume rate cuts as soon as next month, albeit not at the scale or pace Trump has repeatedly demanded – and its chair, Jerome Powell, has cautioned that the president’s tariffs and immigration crackdown have disrupted the global economy and knocked the US labor force. | It comes as the Fed gears up to resume rate cuts as soon as next month, albeit not at the scale or pace Trump has repeatedly demanded – and its chair, Jerome Powell, has cautioned that the president’s tariffs and immigration crackdown have disrupted the global economy and knocked the US labor force. |