President Trump’s effort to oust the Federal Reserve governor has kicked off a landmark legal battle, one that will have far-reaching consequences for the institution’s independence.
The Supreme Court has said the Federal Reserve Board’s independence warrants protection. President Trump’s effort to fire a member will test that commitment.
Bill Pulte, who has more than three million followers on social media, has used his position at the Federal Housing Finance Agency to attack and investigate Mr. Trump’s political enemies.
President Trump’s attempt to fire Lisa Cook, a Fed governor, will set off a long legal battle. Economists warn it could lead to higher inflation and government borrowing costs.
President Trump, during his campaign for a second term, was accused of fraudulently inflating his net worth in order to get better rates on bank loans.
President Trump told Lisa Cook that he had found sufficient cause “to remove you from your position.” Ms. Cook and her lawyer said they would fight the firing.
President Trump’s threat to fire Lisa Cook, a Federal Reserve governor, came after the director of the Federal Housing Finance Agency accused her of mortgage fraud.
The president’s second term has been marked by his eagerness to go after his foes and his assertions of presidential authority. Both traits are on display as he seeks control over the central bank.
President Trump insisted on securing a $200 million payment in negotiations with Columbia University on top of the policy changes it had already committed to make.
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