This case is about Trump’s attempt to get rid of the concept of ‘Independent’ Agencies in the US Government….
Trump moved to fire Cook last month, citing allegations by a member of his administration that she had committed mortgage fraud. No criminal charges have been filed, and Cook denies wrongdoing. She sued to stop Trump from ousting her.
The president is legally allowed to remove members of the Federal Reserve Board “for cause,” a phrase long understood to mean inefficiency, neglect of duty or malfeasance — but the specifics have never been tested in court.
Cook has shown strong evidence that her removal from the Fed board likely violated the law, Judge Jia Cobb wrote.
“At this preliminary stage, the Court finds that Cook has made a strong showing that her purported removal was done in violation of the Federal Reserve Act’s ‘for cause’ provision,” she wrote.
The Fed’s “for cause” standard for removal applies only to a governor’s conduct and performance while in office, not actions before taking the role, Cobb signaled. Trump has alleged that Cook engaged in mortgage fraud before joining the central bank.
The judge also said Cook’s removal likely violated Cook’s due process rights.
The Fed board will meet next week, and many analysts expect the central bank to cut interest rates — which Trump has been advocating publicly for months. Tuesday’s ruling means Cook will likely be able to participate in that meeting, though the Trump administration is almost certain to appeal the decision….