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Lisa Cook joined the Board of Federal Reserve in May 2022 and became the first black female governor of this board.
US President Donald Trump has removed Federal Reserve Governor Lisa Cook from his post. Trump gave this information on his social media platform Truth social. Lisa Cook was appointed in 2022 by the then President Joe Biden.
He said- Lisa Cook is being removed from the Board of Governors of the Federal Reserve with immediate effect. The move has created a new controversy over the freedom of the American central bank i.e. Federal Reserve. It is believed that this case can go to the Supreme Court.
Mor gauge removed after accusations of fraud
He was recently accused of Morgay Fraud (fraud in home loan). The allegations were made by Bill Pulte, director of Federal Housing Finance Agency (FHFA), who is considered a critical supporter of Trump and a critic of Federal Reserve Chairman Jerome Powell.
- Bill Pulte alleges that in June 2021, Lisa Cook bought a property in Michigan and described it as his principal residence i.e. the main house in the 15 -year morgue agreement.
- A month later, in July 2021, Cook bought another property in Atlanta, Georgia and described it as his main home in a 30 -year agreement.
- Pulte said- ‘How can a woman who is lying to save her interest, how can she take responsibility for controlling interest rates?’
Trump sought resignation from Lisa Cook on 22 August
On August 20, Pulte sent a criminal referral to the Department of Justice (Doj) regarding the matter. After this, justice department lawyer Ed Martin wrote a letter to Fed Chair Jerome Powell demanding the removal of Lisa Cook immediately.
Trump also sought his resignation from Cook and then announced on 22 August that if the cook does not resign, he would dismiss him. Finally, on August 26, Trump removed the cook by implementing his promise.
Lisa Cook said- will not resign under any pressure
Cook had said- I came to know that the FHFA director has created a criminal referral based on my 4-year-old morgue application, which is before I join my fed.
I will not resign under pressure based on any tweet. I am taking questions related to my financial history seriously and will gather the correct information and answer it.
Cook also said that she is collecting facts to respond to these allegations. However, the Trump administration did not wait for his reply and chose the path of dismissal directly.
Does Trump have the right to remove?
Under the Federal Reserve Act 1913, the President can remove a governor only by showing “cause”. Such as severe professional misconduct or malaphson.
Legal experts say that removing Lisa Cook without any concrete evidence or proving fault in court can be legally challenging.
Professor Lev Menand of Columbia Law School and Professor Peter Conty-Brown, Professor of the University of Pennsylvania, said that the allegations against Cook are not yet “enough”, and if the matter goes to court, it could be complicated.
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