President Donald Trump stated yesterday he had fired Federal Reserve Governor Lisa Cook, based on a letter addressed to her posted on his social media — the primary occasion of a president firing a central financial institution governor within the central financial institution’s 111-year historical past.
But Cook stated the president doesn’t have the “authority” to fireplace her and that she plans to proceed in her submit.
The unprecedented transfer represents a big escalation of the president’s battle towards the Fed, which he has blamed for taking too lengthy to decrease rates of interest.
Cook has lately come beneath fireplace by Trump and members of his administration for allegedly committing mortgage fraud. The Justice Department has stated it plans to analyze these allegations first raised by Federal Housing Finance Director Bill Pulte.
Cook has not been charged with any wrongdoing.
The Fed declined to touch upon the information.
It’s unclear whether or not Trump has the authorized authority to fireplace Cook over these allegations. The law specifies {that a} president might solely take away members of the Fed’s board “for cause” — although what deserves a for-cause firing has not been explicitly outlined.