Source : INDIA TODAY NEWS
Federal Reserve governor Lisa Cook has said the Trump administration has no legal basis to remove her from the US central bank’s governing board, in a letter sent late on Wednesday after renewed threats from the White House.
Trump first sought to fire Cook a year ago over allegations that she committed mortgage fraud, which she denies. The allegation has not been proven or considered in court. The US Supreme Court ruled that Cook could remain in her position while the case is litigated, but also said Trump could try to remove her again if he gave proper notice and an opportunity to contest it. A White House aide earlier this month had given Cook until Wednesday to respond.
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In a statement, her attorneys Abbe Lowell and Norman Eisen said, “For the second time in a year, we have explained why there is no legal basis for President Trump to remove Governor Cook for cause. An inadvertent error is not fraud, as the President and a third of his cabinet should know because they reportedly did the same thing. These attacks on Governor Cook are not about real estate paperwork; they are an attempt by President Trump to force the Federal Reserve to bend to his will.”
Trump administration officials have accused Cook of declaring two homes as “primary residences” in mortgage applications. Primary residences can sometimes receive lower mortgage rates or down payments than second homes. Cook said on Wednesday that she had referred to one of those two homes in some documents as a “vacation home” and had not sought to deceive lenders. She said any errors were unintentional and did not justify her firing.
If Trump is able to remove Cook, he could appoint a replacement and his nominees would gain a majority on the Fed’s board. Trump has long criticised the Fed for not cutting its benchmark interest rate quickly enough. The dispute centres on Cook’s mortgage paperwork, her denial of fraud and Trump’s renewed attempt to remove her from the Federal Reserve board.
With PTI Inputs
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SOURCE :- TIMES OF INDIA
