US Supreme Court justices on Wednesday questioned the legality of President Donald Trump's attempts to remove Federal Reserve Board of Governors member Lisa Cook from office. Reuters reports this, writes UNN.
Details
The arguments lasted about two hours, during which representatives of both the conservative and liberal wings of the court showed reluctance to overturn a previous injunction against Cook's dismissal before the merits of the case were heard. This is the first time since the Fed's founding in 1913 that a US president has attempted to forcibly remove a central bank official.
Judges' concerns about the central bank's independence
The judges expressed serious concern that supporting the Trump administration's position could undermine the Fed's political independence.
Conservative Justice Brett Kavanaugh emphasized that the absence of judicial review and clear procedures to protect an official would allow the president to use any insignificant or old accusations as a pretext for dismissal. According to the judges, this would create a dangerous precedent where the threshold for removing Fed leadership would become too low, which would negatively affect the stability of the US economy.
Procedural issues and accusations against Lisa Cook
During the hearings, the judges pressed US Solicitor General John Sauer, demanding an explanation as to why Lisa Cook was not given the opportunity to officially respond to allegations of mortgage fraud, which Trump used as grounds for her removal. Cook herself categorically denies these accusations. The court focused on discussing what exactly, according to federal law, can be considered a legitimate "cause" for dismissal and what procedures should ensure a fair hearing of the case to avoid arbitrary political decisions in the financial sphere.