The US Department of Justice has supported President Donald Trump’s decision to remove Federal Reserve Governor Lisa Cook, stating that her dismissal was lawful and not motivated by any secret agenda to lower interest rates. Cook faces allegations of mortgage fraud and is challenging her removal in court. The DOJ has filed a motion to dismiss her request to block the termination, signaling the government’s firm stance on the matter. The accusations against Cook were brought forward by the Director of the Federal Housing Finance Agency, alleging fraudulent conduct in mortgage dealings, prompting the DOJ to initiate a criminal investigation. Court documents emphasize that judges should not question the president’s decision on the basis that it aimed to control Federal Reserve policies or reduce interest rates. This case holds significance for the US financial system, as Federal Reserve governors play a crucial role in setting interest rates and monetary policy. Cook’s removal may impact the institution’s policies, especially amid ongoing economic challenges. The situation also fuels debate over political interference in Federal Reserve policies during Trump’s administration. Should the court uphold Cook’s dismissal, it would affirm the president’s legal authority to remove Fed governors accused of criminal conduct. Conversely, a ruling in Cook’s favor could mark a pivotal moment in balancing financial institution independence against political intervention.
Source: binance
