WASHINGTON (AP) — President Donald Trump’s administration on Wednesday appealed a ruling blocking him from firing Federal Reserve Gov. Lisa Cook as he seeks more control over the traditionally independent board.
The notice of appeal came hours after U.S. District Judge Jia Cobb handed down the ruling. The White House has insisted Trump, a Republican, has the right to fire Cook over over allegations raised by one of his appointees that she committed mortgage fraud related to two properties she bought before she joined the Fed.
The case could soon reach the Supreme Court, where the conservative majority has allowed Trump to fire several board members of other independent agencies but has suggested that power has limitations at the Federal Reserve.
Cook’s lawyers have argued that firing her was unlawful because presidents can only fire Fed governors for cause, which has typically meant poor job performance or misconduct. The judge found the president’s removal power is limited to actions taken during a governor’s time in office.
Cook is accused of saying that both her properties, in Michigan and Georgia, were primary residences, which could have resulted in lower down payments and mortgage rates. Her lawsuit denied the allegations without providing details. Her attorneys said she should have gotten a chance to respond to them before getting fired.
Trump has repeatedly attacked Fed Chair Jerome Powell for not cutting the short-term interest rate the Fed controls more quickly. If Trump can replace Cook, he may be able to gain a 4-3 majority on the Fed’s governing board.
No president has sought to fire a Fed governor before. Economists prefer independent central banks because they can do unpopular things like lifting interest rates to combat inflation more easily than elected officials can.
Cook is set to participate in a Fed meeting next week. The meeting is expected to reduce its key short-term rate by a quarter-point to between 4% and 4.25%.
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Serbia’s prosecutor for organized crime has charged a government minister and three others with abuse of position and falsifying of documents related to a luxury real estate project linked to U.S. President Donald Trump’s son-in-law Jared Kushner. The charges came on Monday. The investigation centers on a controversy over a a bombed-out military complex in central Belgrade that was a protected cultural heritage zone but that is facing redevelopment as a luxury compound by a company linked to Kushner. The $500 million proposal to build a high-rise hotel, offices and shops at the site has met fierce opposition from experts at home and abroad. Selakovic and others allegedly illegally lifted the protection status for the site by falsifying documentation.
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President Donald Trump says he will allow Nvidia to sell its H200 computer chip used in the development of artificial intelligence to “approved customers” in China. Trump said Monday on his social media site that he had informed China’s leader Xi Jinping and “President Xi responded positively!” There had been concerns about allowing advanced computer chips into China as it could help them to compete against the U.S. in building out AI capabilities. But there has also been a desire to develop the AI ecosystem with American companies such as chipmaker Nvidia.
House Republicans in key battleground districts are working to contain the political fallout expected when thousands of their constituents face higher bills for health insurance coverage obtained through the Affordable Care Act. For a critical sliver of the GOP majority, the impending expiration of the enhanced premium tax credits after Dec. 31 could be a major political liability as they potentially face midterm headwinds in a 2026 election critical to President Donald Trump’s agenda. For Democrats, the party’s strategy for capturing the House majority revolves around pinning higher bills for groceries, health insurance and utilities on Republicans.
