{"id":1894,"date":"2025-09-26T14:42:30","date_gmt":"2025-09-26T14:42:30","guid":{"rendered":"https:\/\/blog.cedritech.com\/?p=1894"},"modified":"2025-09-26T14:42:30","modified_gmt":"2025-09-26T14:42:30","slug":"cook-warns-supreme-court-that-siding-with-trump-on-fed-firing-risks-chaos-and-disruption-for-markets","status":"publish","type":"post","link":"https:\/\/blog.cedritech.com\/?p=1894","title":{"rendered":"Cook warns Supreme Court that siding with Trump on Fed firing risks &#8216;chaos and disruption&#8217; for markets"},"content":{"rendered":"<p class=\"yf-1090901\">Federal Reserve governor Lisa Cook urged the Supreme Court Thursday to reject President Trump\u2019s effort to fire her, arguing it would harm central bank independence and disrupt financial markets.<\/p>\n<p class=\"yf-1090901\">\u201cGranting the President\u2019s request for immediate relief to alter the status quo would sound the death knell for the central-bank independence that has helped make the United States\u2019 economy the strongest in the world,\u201d Cook\u2019s lawyers argued in a new filing.<\/p>\n<p class=\"yf-1090901\">There needs to be some \u201cmeaningful check\u201d on the president\u2019s ability to remove Cook, they added, noting that otherwise \u201cany president could remove any governor based on any charge of wrongdoing, however flawed.\u201d<\/p>\n<figure class=\"yf-8xybrv\" data-testid=\"article-figure-image\">\n<div class=\"image-container yf-1gfnohs\">\n<div class=\"image-wrapper yf-1gfnohs\"><img loading=\"lazy\" decoding=\"async\" class=\"yf-1gfnohs loaded\" src=\"https:\/\/s.yimg.com\/ny\/api\/res\/1.2\/Uedeg46yiJ9nUD58TMv67Q--\/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MDtoPTY3NDtjZj13ZWJw\/https:\/\/s.yimg.com\/os\/creatr-uploaded-images\/2025-09\/97821030-9a50-11f0-9bcf-1ceb75249d1c\" alt=\"FILE PHOTO: Federal Reserve Governor Lisa Cook attends the Federal Reserve Bank of Kansas City&amp;#39;s 2025 Jackson Hole economic symposium, \" width=\"960\" height=\"674\" \/><\/div>\n<\/div><figcaption class=\"yf-8xybrv\">Federal Reserve governor Lisa Cook. REUTERS\/Jim Urquhart\/File Photo\u00a0<span class=\"caption-separator yf-8xybrv\" data-svelte-h=\"svelte-nxhdlu\">\u00b7<\/span>\u00a0Reuters \/ Reuters<\/figcaption><\/figure>\n<p class=\"yf-1090901\">The filing was a response to the Justice Department&#8217;s Sept. 18 emergency request to lift a federal judge&#8217;s order that blocked Trump from immediately removing Cook for mortgage fraud allegations.<\/p>\n<p class=\"yf-1090901\">Cook&#8217;s lawyers also made the argument that if the Supreme Court sides with Trump, it could have \u201cdire repercussions\u201d for financial markets while risking &#8220;chaos and disruption.&#8221;<\/p>\n<p class=\"yf-1090901\">It could even raise the possibility that another governor would be confirmed during the pending litigation, the lawyers said, requiring a court to decide between two Fed governors for the same seat.<\/p>\n<p class=\"yf-1090901\">Earlier on Thursday, a list of former Fed chairs that included Ben Bernanke and Janet Yellen\u00a0filed an amicus brief\u00a0with the Supreme Court advocating for Cook.<\/p>\n<p><iframe loading=\"lazy\" title=\"Trump would &#039;eviscerate&#039; Fed independence with Lisa Cook firing, lawyers tell Supreme Court\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/qEXOhLm8uwE?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p class=\"yf-1090901\">The former Fed chairs argued that \u201callowing the government to remove a member of the Board of Governors for the first time in the Nation\u2019s history, while under the cloud of legal challenge, will erode public confidence in the Fed\u2019s independence and threaten the long-term stability of our economy.\u201d<\/p>\n<p class=\"yf-1090901\">The fight in the nation&#8217;s highest court comes after US District Judge Jia Cobb on Sept. 9 blocked Trump from firing Cook, saying that the alleged mortgage fraud allegations do not meet the Federal Reserve Act&#8217;s &#8220;for cause&#8221; clause needed to remove a central bank official.<\/p>\n<p class=\"yf-1090901\">The White House appealed that ruling to the US Court of Appeals for the District of Columbia Circuit. But in a 2-1 ruling on Sept. 15 that request was also rejected.<\/p>\n<p class=\"yf-1090901\">Cook participated in the Fed\u2019s policy meeting last week, voting to lower rates by 25 basis points.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Federal Reserve governor Lisa Cook urged the Supreme Court Thursday to reject President Trump\u2019s effort to fire her,<\/p>\n","protected":false},"author":3,"featured_media":1895,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[7,48],"tags":[],"class_list":["post-1894","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-us"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=\/wp\/v2\/posts\/1894","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1894"}],"version-history":[{"count":1,"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=\/wp\/v2\/posts\/1894\/revisions"}],"predecessor-version":[{"id":1896,"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=\/wp\/v2\/posts\/1894\/revisions\/1896"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=\/wp\/v2\/media\/1895"}],"wp:attachment":[{"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1894"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1894"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.cedritech.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1894"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}