A U.S. federal judge has temporarily blocked the removal of Federal Reserve Board member Lisa Cook, who challenged President Donald Trump’s decision to oust her from the central bank.
اضافة اعلان
Federal Judge Jia Cobb in Washington approved Cook’s request to issue an order keeping her on the Federal Reserve Board for the time being while her legal case is considered. The ruling comes just one week before the Fed’s highly anticipated upcoming meeting on interest rates.
Two weeks ago, Trump ordered Cook’s immediate removal, citing suspicion of fraud in a mortgage-related matter, a move that escalates the pressure the Republican billionaire is placing on the independent central bank.
In the United States, the president has limited authority to remove central bank officials. The Supreme Court recently ruled that Fed officials can only be removed “for cause,” which generally means committing a wrongdoing.
Trump’s justification for Cook’s removal relied on a criminal referral issued by the director of the Federal Housing Finance Agency—an ally of Trump—addressed to Attorney General Pam Bondi.
This legal dispute is expected to become a new test of presidential powers under Trump’s current term, as the 79-year-old Republican, backed by loyal figures in government, seeks to assert executive authority.
(AFP)
