DOJ calls Lisa Cook’s claim that Trump seeks her ouster to control Fed ‘baseless’

The Associated Press WASHINGTON AP The U S Justice Department urged a federal judge on Thursday to allow the immediate removal of Federal Reserve Governor Lisa Cook while she fights to keep her job dismissing as baseless Cook s claim that the president is attempting to fire her so that he can seize control of the independent central bank Related Articles Social Safeguard praises its new chatbot Ex-officials say it was tested but shelved under Biden Where states stand in the battle for partisan advantage in US House redistricting maps As Republicans spar over IVF chosen turn to obscure MAHA-backed alternative Gregory Bovino head of Los Angeles campaign shows how immigration agents rack up arrests The president blamed AI and embraced doing so Is it becoming the new fake news Trump explained he was firing Cook on Aug after one of his appointees alleged that she committed mortgage fraud related to two properties she purchased in before she joined the Fed Cook is accused of falsely listing two properties as primary residences Down payment requirements are often more lenient and mortgage rates lower for primary residences versus a second home or outlay property In a filing in U S District for Washington D C this week Cook s lawyers argued that firing her was unlawful because presidents can only fire Fed governors for cause which has typically meant inefficiency neglect of duty or malfeasance while in office They also stated she was entitled to a hearing and a chance to respond to the charges before being fired but was not provided either Attorneys announced in the court filing that Cook never committed mortgage fraud Responding on Thursday the Justice Department commented the president has the discretion to fire Cook for cause and that his decisions cannot be reviewed by the courts The affair could become a turning point for the -year old Federal Reserve which was designed by Congress to be insulated from day-to-day political influence Economists prefer independent central banks because they can do unpopular things like lifting interest rates to combat inflation more easily than elected executives Trump has repeatedly attacked Fed Chair Jerome Powell and the other members of the Fed s interest-rate setting committee for not cutting the short-term interest rate they control more hastily Various economists worry that if the Fed falls under the control of the White House it will keep its key interest rate lower than justified by economic fundamentals to satisfy Trump s demands for cheaper borrowing