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Supreme Court blocks Trump's attempt to fire Federal Reserve governor Lisa Cook
Key takeaways
- In a 5-4 decision, justices from the country's top court said the administration had not provided Federal Reserve Governor Lisa Cook sufficient "due process" for her to contest her removal.
- Cook has denied the allegations, which Fed defenders say are a pretext to allow Trump to assert more control over the bank.
- By law, a president can only remove governors of the Federal Reserve "for cause".
In a 5-4 decision, justices from the country's top court said the administration had not provided Federal Reserve Governor Lisa Cook sufficient "due process" for her to contest her removal.
The decision sends the matter back to lower courts, where the administration will have to prove its allegations that Cook has committed mortgage fraud if it wishes to proceed with the firing and where Cook would have a chance to challenge the accusation.
Cook has denied the allegations, which Fed defenders say are a pretext to allow Trump to assert more control over the bank.
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