A block on the removal of Fed Governor Lisa Cook has been appealed by U.S. President Donald Trump, but new evidence has emerged.
An appeal has been filed by United States President Donald Trump in the case involving Federal Reserve Governor Lisa Cook ahead of a key interest rate decision by the central bank this week.
An appeal has been filed by lawyers representing the Department of Justice on behalf of the president. It is against a preliminary injunction that was issued by the district court on September 9 regarding Trump’s decision to remove Cook from office..
The administration argues that removal “for cause” is a “capacious standard that has been vested in the President’s discretion by Congress” and is not subject to judicial review.
It was stated that “when a statute gives a power of removal ‘for cause,’ without any specification of the causes, the removal decision is a matter of discretion and is not reviewable.”
On August 25, an attempt was made by President Trump to remove Cook based on alleged “deceitful and potentially criminal conduct” concerning mortgage agreements, citing apparent misrepresentations in loan documents. This was challenged by Cook, who argued that her firing exceeded presidential authority and violated her due process rights.
The case has resulted in a significant legal battle over presidential removal powers and has renewed concerns over the Fed’s independence. This raises questions about the U.S. dollar’s reliability.
New Documents Emerge in Cook’s Case
However, new evidence appears to have emerged that directly contradicts the mortgage fraud claims of the Trump administration.
According to an NBC report on Saturday, a May 2021 loan summary states that Cook’s Atlanta property was used for a vacation home, which supports her position that she properly disclosed it as a second home, not her primary residence.
The documents could mean that there may be no actual misrepresentation in her mortgage applications, which weakens the government’s arguments.
Fed’s Rate Decision Approaches
Trump’s appeal comes just a few days before a key Federal Reserve interest rate decision on Wednesday.
Rates are expected to be unanimously cut by the Fed this week for the first time since December 2024.
Based on CME futures markets, a 96.4% probability of a 25 basis point cut to 4.0% to 4.25% is projected for Wednesday. There is also a 3.6% chance of a larger 50 basis point cut.
In an interview with Yahoo Finance, RSM chief economist Joe Brusuelas stated that “yes, you’re going to get your rate cut out there in trading land.” He then added that economic data does not suggest that there will be three cuts before the end of the year.
Meanwhile, BlackRock executive Rick Rieder is climbing the list of contenders to serve as the next Fed chair after Jerome Powell’s term expires in May, according to Bloomberg.
