The Federal Reserve has confirmed that it will abide by the court’s decision in the lawsuit filed by Fed board of governors member Lisa Cook challenging her firing by President Trump. Cook has indicated through her personal attorney that she will promptly challenge this action in court and seek a judicial decision that would confirm her ability to continue fulfilling her responsibilities as a Senate-confirmed member of the Board of Governors of the Federal Reserve System.
Trump’s firing and challenge by Cook escalate the ongoing pressure campaign from the White House on the Fed to a new level. The Fed’s mandate is to keep unemployment and prices low by tweaking short-term interest rates to adjust profitability. Trump has been putting pressure on the Fed through unorthodox means, including accusing Federal Housing Finance Agency (FHFA) Director Bill Pulte of mortgage fraud, citing documents that allegedly show Cook having designated two different houses as her primary residence. Pulte has attacked other political enemies of the president from his position atop the FHFA, which oversees government-backed mortgage securitizes Fannie Mae and Freddie Mac.
In conclusion, the Federal Reserve will abide by any court decision in the lawsuit filed by Lisa Cook and the ongoing pressure campaign from the White House on the Fed.
