Looks like the SCOTUS is not going to allow Lisa Cook to be fired by Trump.
This essentially endorses the Feds Quasi-independent status.
The Supreme Court on Wednesday appeared likely to allow Lisa Cook to keep her position on the Federal Reserve Board of Governors and reject President Trump's attempt to fire her for now.
The high court heard arguments in a high-stakes case over Mr. Trump's effort to oust Cook, which he attempted last August over allegations she engaged in mortgage fraud. Lower courts had allowed Cook to remain in her post while she pursued a legal challenge to her firing.
The Federal Reserve Act of 1913 gives the president the authority to remove a member of the Fed's Board of Governors "for cause," though the law does not define the term. In informing Cook of her removal, Mr. Trump wrote in a letter shared to social media that he had "sufficient cause" to do so because of what he claimed was "deceitful and potentially criminal conduct in a financial matter."
Cook has denied wrongdoing and has not been criminally charged. Mr. Trump's move to fire her was unprecedented. No other president has tried to oust a Fed governor in the central bank's 112-year history.
Justice Brett Kavanaugh pushed Sauer on the implications of the administration's position in the case and how it would impact the Fed's independence.
"Your position that there's no judicial review, no process required, no remedy available, very low bar for cause that the president alone determines — that would weaken if not shatter the independence of the Federal Reserve," he said.
Kavanaugh said that if the Supreme Court accepts Mr. Trump's view, a Democratic successor could come in and fire all of his appointees, effectively turning the Fed's for-cause removal standard into at-will. Kavanaugh, who was appointed by Mr. Trump, stressed that the court should think about the "consequences of your position for the structure of the government."
"It incentives a president to come up with what, as the Federal Reserve former governors say, trivial or inconsequential or old allegations that are very difficult to disprove. It incentivizes kind of the search-and-destroy and find something and just put that on a piece of paper," he said. "No judicial review. No process, you're done."
This essentially endorses the Feds Quasi-independent status.
Supreme Court seems likely to let Lisa Cook keep job on Fed Board after Trump's firing
President Trump moved to fire Lisa Cook from the Federal Reserve Board of Governors last August. Courts have so far allowed her to continue serving in her role while litigation continues.
www.cbsnews.com
Supreme Court seems likely to let Lisa Cook keep job on Fed Board after Trump's firing
President Trump moved to fire Lisa Cook from the Federal Reserve Board of Governors last August. Courts have so far allowed her to continue serving in her role while litigation continues.
www.cbsnews.com
The Supreme Court on Wednesday appeared likely to allow Lisa Cook to keep her position on the Federal Reserve Board of Governors and reject President Trump's attempt to fire her for now.
The high court heard arguments in a high-stakes case over Mr. Trump's effort to oust Cook, which he attempted last August over allegations she engaged in mortgage fraud. Lower courts had allowed Cook to remain in her post while she pursued a legal challenge to her firing.
The Federal Reserve Act of 1913 gives the president the authority to remove a member of the Fed's Board of Governors "for cause," though the law does not define the term. In informing Cook of her removal, Mr. Trump wrote in a letter shared to social media that he had "sufficient cause" to do so because of what he claimed was "deceitful and potentially criminal conduct in a financial matter."
Cook has denied wrongdoing and has not been criminally charged. Mr. Trump's move to fire her was unprecedented. No other president has tried to oust a Fed governor in the central bank's 112-year history.
Justice Brett Kavanaugh pushed Sauer on the implications of the administration's position in the case and how it would impact the Fed's independence.
"Your position that there's no judicial review, no process required, no remedy available, very low bar for cause that the president alone determines — that would weaken if not shatter the independence of the Federal Reserve," he said.
Kavanaugh said that if the Supreme Court accepts Mr. Trump's view, a Democratic successor could come in and fire all of his appointees, effectively turning the Fed's for-cause removal standard into at-will. Kavanaugh, who was appointed by Mr. Trump, stressed that the court should think about the "consequences of your position for the structure of the government."
"It incentives a president to come up with what, as the Federal Reserve former governors say, trivial or inconsequential or old allegations that are very difficult to disprove. It incentivizes kind of the search-and-destroy and find something and just put that on a piece of paper," he said. "No judicial review. No process, you're done."
