Fed Governor Cook's lawyer denounces Trump's latest attempt to remove her
TLT•Lisa Cook's lawyer challenged the objectivity of a White House probe into mortgage-fraud allegations and said Cook could not attend a November 5 hearing. The earliest she could attend would be after the Fed's December 8-9 policy meeting.
1. Lawyer challenges probe
Lisa Cook's lawyer, Abbe Lowell, questioned the objectivity of a White House probe into allegations that the Federal Reserve governor committed mortgage fraud. President Donald Trump announced the inquiry and a three-person committee earlier this month, and said he would proceed with firing Cook if the committee recommended it. Cook denies wrongdoing and has sued to keep her job.
2. Hearing schedule disputed
Lowell said one proposed committee member, White House economic policy advisor Kevin Hassett, had previously pressured Cook to take leave and suggested Trump had cause to fire her. He said Cook could not attend a November 5 hearing because she would be at financial and monetary policy meetings in Europe. The earliest she could attend would be after the Fed's December 8-9 policy meeting.
3. Court ruling sets limits
The Supreme Court barred Trump from firing a Fed governor at will, citing the need for the central bank's political independence. The ruling also described a possible path to removal if a Fed official can review the evidence and respond to the allegations. The Fed raised its policy rate in September and is expected to do so again at its final meeting of the year.
