Fed speaks out about governor's dismissal

(Dan Tri) - After President Trump fired Governor Lisa Cook, the Fed officially spoke out.

The US Federal Reserve (Fed) has just officially spoken out about President Donald Trump's announcement of firing Governor Lisa Cook. The agency affirmed that it will respect any decision from the court.

" Congress passed the Federal Reserve Act and provides that governors serve long, fixed terms and can only be removed by the president for cause," a Fed spokesman stressed, stressing the legal framework protects the agency's independence.

A Fed spokesman said Ms. Cook will take the case to court through her personal attorney, Abbe Lowell.

Governor Lisa Cook at a Fed meeting in Washington on June 25 (Photo: AFP).

President Trump also told reporters that he would respect any decision from the court on this matter.

He reiterated the content of the petition for prosecution that the director of the US Federal Housing Finance Agency Bill Pulte sent to Attorney General Pam Bondi on August 15.

Mr. Pulte alleges that Ms. Cook listed her permanent residence as an apartment in Atlanta, despite having previously taken out a mortgage on a home in Michigan and claiming it as her primary residence. Mr. Pulte added that the FHFA has documents documenting Ms. Cook’s “mortgage fraud.”

According to President Trump, the Fed has an important role in setting interest rates, managing reserves and member banks. The American people need to be sure they can trust Fed members to keep their policy-setting duties.

"The President has invoked the statutory authority under 12 USC 242, which allows for the removal of a Fed Governor for cause. According to the President, the credible allegation that Ms. Cook made false financial statements is sufficient grounds for dismissal, especially when she plays a key role in supervising financial institutions," spokesman Kush Desai added of President Trump's decision.

The case is expected to begin in the Federal Circuit and the Supreme Court. The Supreme Court justices will have the final say in the dispute. The ruling will set an important precedent about the limits of presidential power over independent agencies, especially the Fed.

Source: https://dantri.com.vn/kinh-doanh/fed-len-tieng-vu-thong-doc-bi-sa-thai-20250827115558804.htm