The Supreme Court of the United States has made Trump a damper: he must not remove Fed Gouvenur Cook of the office until further notice. A power struggle has been raging between the president and the central bank for months.
US President Donald Trump has suffered a legal setback: The United States’s Supreme Court has initially stopped the dismissal of Central Bank governor Lisa Cook ordered by Trump.
The Supreme Court was temporarily right and said that she could stay in office at least until a hearing in January at the Central Bank Federal Reserve (FED) as governor.
Trump failed twice
Trump justifies the planned dismissal of the FED-Gouverneur with the fact that she supposedly committed mortgage fraud before her term of office. So far, however, courts have been preventing him from releasing them: At the beginning of September, a court in the capital Washington had temporarily put a stop to his project.
The judge responsible in the case said that the President may only relieve a member of the FED board “for valid reasons”. So someone could not be punished solely due to behaviors from the time before taking office. She also wrote that the public interest in the independence of the Fed spoke for Cooks reinstatement.
Trump did not want to accept that and turned to an appellate court. In mid -September, this also decided in favor of cooks that their discharge would continue to be blocked. In order to suspend this decision, the US President then called the highest US court with the Supreme Court.
Trump assumes Cook wrong information
Trump had announced in August to relieve Cook with immediate effect from her office. His reasoning: There are sufficient reasons for the assumption that it had given incorrect information in one or more mortgage contracts.
Cook then announced legal steps through her lawyers. Cook argued that the US President should not be recalled at all. The Fed governor denied the allegations. Cook continued, even if she should have unknowingly made false information, this was done years before taking office at the Fed when taking a private mortgage.
Trump wants to replace Fed boss Powell
Trump has been putting pressure on the Fed for a long time and tries to bring the central bank to line. For months, the US President has been calling for a massive reduction in key interest rate in order to make real estate loans cheaper and to boost investments in the United States. He also targets the management level.
He demanded several times the resignation of the current FED leader Jerome Powell. Although it is still unclear whether he can actually dismiss it. The Central Bank of the United States is of great importance worldwide. The FED is aimed at contributing to the US financial stability.
