WASHINGTON, D.C. – Supreme Court Justices from across the spectrum seemed skeptical about the President’s efforts to remove one of the Federal Reserve Board members. The President has accused Lisa Cook of mortgage fraud and is looking to fire her. Experts have said it’s an unprecedented case and a test of the President’s power to remove people at independent agencies.
Justices, even conservative-leaning Justices, expressed an uneasiness about undermining the long independence of the central bank.
Members of the Federal Reserve’s Board of Governors are protected by law from removal except “for cause”. The President has contended such restrictions are unconstitutional in other cases. He cited mortgage fraud allegations against Cook as a “cause” that he claims is within the statute. So far, that claim has not been litigated, and Cook denies the allegations. Some of the Justices seemed skeptical Cook received sufficient notice of the President’s accusations and an opportunity to respond.
“Was Mrs. Cook given the opportunity to have a formal proceeding to contest that evidence or explain it,” asked Justice Ketanji Brown Jackson.
“Not a formal proceeding, she was given an opportunity in public,” responded D. John Sauer, the Solicitor General.
“In the world,” asked Justice Jackson. “Like, she was supposed to post about it, and that was the opportunity to be heard? You’re saying was afforded to her in this case?”
“Yes, and she’s had plenty of opportunities in the ensuing months and ongoing litigation there’s never been a personal statement addressing that or justifying it,” responded Sauer.
Justice Brett Kavanaugh added if they allowed the President to fire Cook it would “weaken” the independence of the Federal Reserve.
“112 years, it’s unprecedented that any Federal Reserve officer has ever, has ever been removed,” said a Justice. “So the unprecedented nature of this case is a part of what the president did, not what Mrs. Cook did.”
The administration is also investigating the Fed Chairman Jerome Powell for his comments to a Senate Committee on the renovation projects at Fed office buildings. Powell claims those are “pretexts” and accuses the President of going after him because of interest rates.
