The U.S. Department of Justice has rejected claims that President Donald Trump has the authority to fire Fed Lisa Cook, claiming that her firing was a “pretty to pave the way for interest rate cuts.”
Cook, accused of mortgage fraud, filed a lawsuit challenging his firing. Government lawyers repeated the arguments held at last week’s hearing, arguing that Cook’s request to block a trial pending his dismissal should be denied.
The submission follows a report that the Department of Justice has launched a criminal investigation into Cook. The administration argued that the allegations of fraud, originally filed by Mark Pluto, the manager of the federal housing finance agency, constituted sufficient “cause” to remove cooks under US law.
The department argued that the court lacked the power to question Trump’s reasons for his firing. The submission states, “His only ‘evidence’ is that the president criticized the Fed’s policies. However, the existence of policy disagreements does not justify the dismissal of President Cook.”
*This is not investment advice.
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