The Central Bank of the, contested on Tuesday (26) the resignation of the director, announced by the president. In an official note, the institution stated that, according to the law, its directors can only be removed “for just cause” and that Cook intends to contest the decision in court. For the Fed, she remains in office until there is a judicial deliberation.
On Monday, 25, Trump used social networks to announce Cook’s dismissal, alleging charges related to mortgages and declaring not trusting the integrity of the economist. The president stated that the dismissal would have immediate effect. The Fed countered, explaining that the legislation that created the institution, the Federal Reserve Act of 1913, establishes 14 -year fixed terms for its directors as a way to ensure the independence of monetary policy.
“Extended mandates and protections against arbitrary layoffs ensure that Fed decisions are based on data, economic analysis and long -term interests of the American people,” the statement said. The institution reported that Lisa Cook, through her lawyer, will trigger the court to stay at the post. The Fed has assured that it will continue to perform its duties and that, “as usual, it will respect any court decision.” The dispute takes place at a time of Trump’s strong pressure on the independent Fed, for the institution to reduce the basic interest rate.
The demonstration occurs amid tensions between the White House and the Fed. Trump has intensified criticism of the institution, which acts independently, in an attempt to press for a reduction in the basic interest rate.
