Trump asserts expansive power to fire a Fed governor.

Source: nytimes.com



Trump asserts expansive power to fire a Fed governor.
Aug. 29, 2025, 10:04 a.m. ET18 minutes ago

Colby Smith and Tony Romm


Lawyers for President Trump on Friday asked a federal judge to reject a request by Lisa Cook, a governor at the Federal Reserve, to remain in that role as she contests the legality of her firing. In justifying their case, the administration sketched out a sweeping view of the president’s power to dismiss members of the independent central bank.

Friday’s hearing is the first in what is likely to be a landmark legal battle that will determine the future of the Fed and its ability to set interest rates free of political meddling.

In a roughly 30-page filing, submitted just before a federal judge was set to hear the first arguments in the case, the Justice Department said that Mr. Trump had sufficient cause to dismiss Ms. Cook over allegations that she engaged in mortgage fraud, even though she has not been charged with any wrongdoing or committed of any crime.

In doing so, the Justice Department told the court it should be “highly deferential” to the president and his interpretation of what qualifies as sufficient cause to remove a government official. The lawyers attacked Ms. Cook for what they described as a noteworthy refusal to address nature of the allegations against her. The term “for cause” is broadly meant to refer to gross malfeasance or a dereliction of duty, but it is a vague term that is subject to interpretation..................


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The Justice Department said President Trump had sufficient cause to dismiss Lisa Cook, a Federal Reserve governor, over allegations that she had engaged in mortgage fraud, even though she has not been charged with any wrongdoing.Credit...Drew Angerer/Getty Images