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Federal Judge Blocks Trump‘s Attempt to Fire Fed Governor Lisa Cook
Washington D.C. – In a meaningful win for the federal Reserve’s independence, a federal judge has temporarily blocked President Donald Trump from removing Lisa Cook from the Board of Governors. The ruling allows Cook to continue serving on the central bank’s board while her lawsuit challenging the dismissal proceeds.
The move comes after President trump announced Cook’s firing, alleging she falsified mortgage documents. Judge Jia Cobb of Washington D.C. granted Cook’s request for a temporary restraining order, citing that the alleged misconduct predated her appointment as a Fed governor.
This decision is especially impactful as the Federal Reserve’s Federal Open Market Committee (FOMC) – the 12-member body responsible for setting U.S.interest rates – is scheduled to meet next Tuesday and Wednesday. Markets widely anticipate a rate cut at this meeting, and Cook’s continued presence on the seven-member board ensures the current composition remains intact for this crucial decision.
the White House has indicated it will not concede, stating that the judge’s ruling “will not be the last say on the matter,” suggesting a potential appeal.
President Trump has been publicly critical of Federal Reserve chair Jerome Powell for not lowering interest rates this year. Cook’s dismissal raised concerns about the potential for political interference in the Fed’s traditionally independent decision-making process.Experts feared that a shift in the board’s composition could lead to future monetary policy decisions being influenced by political considerations.
Key Takeaways:
A federal judge has temporarily blocked President trump from removing Lisa Cook from the Federal Reserve Board of Governors.
Cook will likely remain on the board for the Fed’s Sept.16-17 meeting.
The White House plans to appeal the judge’s decision.[world-today-news.com] - Delivering authoritative, timely, and insightful news coverage.
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Keywords: Federal reserve, Lisa Cook, Donald Trump, interest rates, FOMC, Federal Reserve Board of Governors, Jerome Powell, monetary policy, Fed independence.
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