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US President Donald Trump cannot get rid of Lisa Cook’s Federal Reserve Governor from his role, the federal appeal court decided.
Decree 2-1 on Monday is Trump’s blow, as it means Cook may remain in place for a Fed policy meeting on Tuesday and Wednesday, where the US is expected to reduce interest rates.
In August, Trump announced that he was shooting at the grounds that she had committed a mortgage fraud. Cook denied these accusations and said the president had no powers to dismiss her.
The case has consequences for the Fed’s ability to set interest rates without politicians’ intervention.
Cook is part of the Council responsible for installing interest rates in the US.
By setting up the Fed in 1913, Congress included provisions that supported it regardless of politics. No president has never removed the Fed Governor.
The laws under which Trump claimed to be entitled to Sack Cook have never been checked in court. The Trump administration is expected to decide on Monday to the Supreme Court.
According to the law created by the Fed, its governors can be removed only by the president “in the case”, although the law does not define the term and does not establish the removal procedures.
Cook appointed by Biden and the first black woman to perform the duties of the Fed Governor, sued Trump In August, saying she had been fired for her position of monetary policy.
This year, the Fed did not reduce interest rates as it is trying to keep inflation under control. With the fact that prices are mostly rising from the influence of Trump’s tariffs on goods imported into the country.
Trump has repeatedly demanded a decrease in aggressive rates, beating Fed Chairman Jerome Powell from the monetary policy.
However, this week is expected to reduce to stimulate the sluggish labor market in the US.
Trump on Monday confirmed his call for the main reduction of interest rates, writing on his social platform of truth that feed the chairman of Jerome Powell, “should reduce interest rates and more than he meant.”
