The Trump administration on Sunday renewed its request that a federal appeals court allow President Donald Trump to remove Federal Reserve governor Lisa Cook, filing a response that urged judges to reject her arguments that the firing was unlawful just days before the central bank is set to vote on interest rates.
The administration filed its reply with the U.S. Court of Appeals for the District of Columbia Circuit ahead of a 3 p.m. Eastern deadline, saying Cook’s legal claims were meritless and defending the president’s authority to remove governors “for cause” when such cause arises. Cook, who sued to block her ouster, has argued the administration has not shown sufficient cause and warned of risks to the economy and the Fed’s independence if a governor can be removed without proper justification.
The legal fight follows allegations by Bill Pulte, a Trump appointee to the Federal Housing Finance Agency, that Cook signed separate documents in which she described both an Atlanta condominium and a home in Ann Arbor, Michigan, as “primary residences.” Pulte submitted a criminal referral to the Justice Department alleging potential mortgage-related wrongdoing; the department has opened an investigation, according to court filings and reporting.
Documents obtained by The Associated Press and cited in court filings showed Cook described the Atlanta condominium as a “vacation home” on a loan estimate and as a “second home” on a later form submitted for security-clearance purposes, details that Cook’s lawyers have cited to rebut the administration’s accusations. The White House relied on the Pulte referral and those allegations in seeking to remove her “for cause.”
A federal judge earlier this week found the removal illegal and ordered Cook reinstated to the Fed’s board. The administration appealed that decision and requested an emergency ruling from the D.C. Circuit just ahead of the Fed’s scheduled meeting this week, where policymakers are expected to consider a quarter-point cut to the central bank’s key interest rate.
Cook is the first Black woman to serve on the Federal Reserve’s Board of Governors. The administration’s move to force her removal would mark the first time in the Fed’s 112-year history that a president has sought to fire a sitting governor.
In its Sunday filing, lawyers for the White House argued that “the public and the executive share an interest in ensuring the integrity of the Federal Reserve,” contending that ensuring that interest can require removing a governor for cause. Cook’s legal team, in a separate filing on Saturday, urged the court to uphold the lower court’s ruling, saying the administration had not met the legal standard for removal and warning that permitting the firing would threaten the Fed’s independence.
Legal experts have said the case raises novel constitutional and statutory questions about the scope of presidential removal power and the independence of the central bank. The D.C. Circuit’s decision on the emergency appeal could affect whether Cook participates in the Fed’s policy deliberations this week.
The Justice Department’s probe and the arbitration of Cook’s legal challenge are ongoing. The appeals court has not yet set a public deadline for a ruling on the emergency request, and judges could either deny the appeal, permitting Cook to remain on the board for the Fed’s meeting, or grant the administration’s request, potentially allowing her removal to take effect immediately pending further proceedings.