The latest updates in a saga that has challenged US Fed independence
The United States Federal Reserve said that it will abide by any court decision made as to whether President Trump has the legal authority to fire Lisa Cook, a member of the Fed Board of Governors.
In a statement released by the Fed, the US Central bank also noted that Cook intends to challenge the action in court. Trump announced via social media on Monday that he was planning to fire Cook under the allegation that she committed mortgage fraud.
The statement did not explicitly weigh in on Trump's decision or motivation, however it emphasized the importance of long tenures for Fed Governors.
“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 statement reads.
Separately, CNBC reports that the President appeared to celebrate that he would soon "have a majority very shortly," implying that in firing Governor Cook and naming a replacement for retiring governor Adriana Kugler the membership of the Federal Reserve board of governors would be more supportive of his desire to cut interest rates. Trump explicitly blame Fed Chair Jerome Powell for housing affordability issues.
“Because of him and his high interest rates, the housing is less than it could be,” Trump said of Powell. “We’re going to get that straightened out very quickly.”
