Lisa Cook’s lawyer says that Trump’s termination was “an illegal action”, who pledges to prosecute

“President Trump has the power to remove the ruler of the Federal Reserve, Lisa Cook,” said Abi Lowel, Washington’s lawyer, who has long represented personalities from both major political parties. “His attempt to launch it, based on the referral letter, lacks any realistic or legal basis. We will file a lawsuit that challenges this illegal procedure.”

Trump’s unprecedented shooting efforts are likely to end in the Supreme Court and can determine the clearest limits of the president’s legal authority over the traditional independent institution. The Federal Reserve is extensively powerful on the American economy by setting a short -term interest rate that can affect the wider borrowing costs of things such as mortgages, car loans and business loans.

The federal reserve weighed on Tuesday for the first time in the shooting, saying that he would “will” commit to any decision of the court.

The Federal Reserve also defended its independence from politics: “Congress, through the Federal Reserve Law, directs that the rulers are serving in long and installed phrases and can be removed by the president only” for the reason. “The central bank said.

However, the Federal Reserve State statement did not answer a major question about Cook: that is, whether it continues to serve at the Federal Reserve during the operation of the legal case. She also did not criticize Trump’s attempt to shoot her.

Trump, my Republic, has A student again and again This President Jerome Powell and the price status committee at the Federal Reserve Bank reduced its rate to enhance the economy and reduce interest payments on the debt pile of $ 37 trillion.

If Trump succeeds in removing Cook from the Board of Governors at the Federal Reserve, it may be eroded Independence of the Political Federal Reserve BankAnd, which is decisive for its ability to fight inflation because it enables the federal reserve to take unpopular steps such as lifting Useful interest rates. The less independent Federal Reserve may leave Americans pay higher interest rates, because investors will demand a higher return to own bonds to compensate for possible inflation in the future, which increases borrowing costs throughout the economy.

Who is on the blackboard?

It seems that Trump has focused his attention since then, as two members of the Board of Directors appointed Christopher, Wald, Michel Buman, during his first term and his name. Stephen calmEconomist at the top White House, to replace the government Adriana KogererWhich was unexpectedly stepped on August 1. If Miran’s nomination is approved by the Senate and Trump is able to replace Cook, he will have 4-3 majority in the Federal Reserve.

Trump Powell criticized at the cabinet meeting on Tuesday and said, “We will have a majority soon,” on the federal reserve.

The Federal Reserve oversees the financial regulations and also voting on all interest rate decisions. Five of the 12 regional bank presidents at the Federal Reserve has a vote, as one of these five has always been the Federal Reserve in New York and the other four who serve on a roundabout.

Legal experts say that the Republican President’s claim that he could shoot Cook, who was appointed by Democratic President Joe Biden In 2022On the shaken ground. But it is an unprecedented step that has not been played in the courts before, and this year the Supreme Court was more willing to allow the president to remove agency officials more than the past.

“It is an illegal shooting, but the president will argue,” the constitution allows me to do so. “This argument has worked in some other cases so far this year.”

Reach to he said supreme court It explains the meaning of the constitution, and “can make the new constitutional law in this issue.”

Obligations against Cook

Bill Botti, one of the appointed Trump at the agency that organizes the mortgage giants, Fani May and Faridi Mac, last week. Bolt claimed that Cook had claimed two primary housing – in Ann Arbur, Michigan, and in Atlanta – in 2021 for better mortgage conditions. Mortgage rates are often higher in the second homes or those purchased for rent.

The next step in Cook is likely to request a judicial order against Trump’s order that allows her to continue her work as a ruler. But the situation puts the federal reserve in a difficult position.

“They have their legal commitment to the law,” Minand said. “This does not mean doing everything the president says … The federal reserve is subject to an independent duty to reach his own conclusions on the legitimacy of the removal of Lisa Cook.”

Trump said in a message posted on the social truth platform late Monday that he was immediately removing Cook Cook due to allegations that she had committed fraud on the mortgage.

Cook says it will not resign

Cook said on Monday night that she would not step down. “President Trump claimed to call me” for a reason “when there is no reason under the law, and he has no authority to do this,” she said in a statement sent via e -mail. “I will not resign.”

The courts allowed the Trump administration to remove the commissioners of the National Council for Labor Relations, the entitlement to the entitlement system and other independent agencies. However, the Cook condition is different.

The Supreme Court wrote on a non -signed order in May, these separation operations were not based on the idea that the president does not need to remove the agency’s heads because they were practicing the executive authority on behalf of this on behalf of this, and the Supreme Court wrote on an unexpected order in May.

In this same matter, the court suggested that Trump did not have the same freedom in the federal reserve, which the court described as “uniquely organized, almost special.”

Remove conservatives for the reason “

The law that rules the central bank, the Federal Reserve Law, includes a ruling that allows the removal of federal conservatives “for the reason.”

“For the sake of reason” is usually explained as it means bad violations or the absence of duty by an official while he was in office, and nothing was done before appointing this person.

Scott Alvarez, the former general adviser at the Federal Reserve and Assistant Professor at Georgetown Lu, said the creation of a “reason” is required to discover a reality.

“We know that there are allegations of Bill Polly, but Lisa has not been able to respond yet,” Alvarez said. “So we do not know if they are true. The allegations are not a reason.”

Luel said on Monday night that “Trump’s reaction” and his requests lack any appropriate process, basis, or legal authority, “adding,” We will take any measures required to prevent his attempt by illegal measures. ”

Cook is the first black woman to work as a ruler. She was a Marshall researcher and obtained certificates from Oxford University and the Faculty of Silman. She studied at Michigan State University and Kennedy’s government college at Harvard University.

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The authors of the Associated Press Mark Sherman and Paul Weizmann contributed to this report.