A federal judge has blocked President Donald Trump from firing Federal Reserve Governor Lisa Cook. Judge Jia Cobb in Washington, D.C., granted on Tuesday Cook’s request to remain in her position while the lawsuit challenging her firing works its way through the court system.
The judge said Cook is likely to win her suit. According to The Wall Street Journal:
Cobb said Cook is “substantially likely” to succeed on her claim that Trump violated the Federal Reserve Act because her purported termination didn’t comply with the statute’s requirement that officials can only be removed for cause. “Removal was not meant to be based on the President’s assumptions about the official’s future performance as extrapolated from unproven conduct dating from before they assumed the office,” Cobb wrote.
Trump, who has made no attempt to conceal his intense disagreement with the Fed’s refusal to lower interest rates, said he wants Cook removed because she committed mortgage fraud, which, he believes, meets the standard of “cause” necessary to remove a Fed official. Federal Housing Finance Agency head Bill Pulte has referred the allegations to the Justice Department (DOJ). You can read more about the mortgage fraud allegations in our previous reporting.
Hidden Motive?
A common suspicion among those paying attention is that the attempt to fire Cook is really a ploy by Trump to change the Fed’s makeup for the ultimate purpose of lowering the central bank’s interest rates. Many Trump allies believe the Fed is keeping interest rates low to keep the economy restrained and, ultimately, help Democrats in next year’s midterm elections.
Cook has not been charged with any crimes as of now. She denies allegations of mortgage fraud and refuses to leave her position.
A White House spokesman indicated Tuesday that this saga is far from over. “This ruling will not be the last say on the matter, and the Trump administration will continue to work to restore accountability and confidence in the Fed,” the spokesman said. The Trump administration will likely appeal, and the case could go all the way to the Supreme Court.
The Senate confirmed Cook in 2022. Members of the Fed’s Board of Governors serve 14 years. A president has never fired a governor.
The Proper Solution
Before Congress signed the Federal Reserve Act in 1913, there was no such thing as a nationwide, centralized interest rate. Banks independently set rates for loans and deposits based on market conditions, their own financial strategies, and local economic factors. But international bankers, financiers, and globalists in general coordinated and carried out a subversive plot to create a central bank that would usurp control over the American financial system.
Trump’s battle with Cook is an attempt to put a bandage over a tumor that needs to be surgically removed. The best remedy, the most effective way to solve the politicization of interest rates while fostering a financial environment that benefits the American people is to abolish the entire Federal Reserve banking system. It is the main vehicle of inflation, which is really a sneaky, immoral way of robbing the American people. Inflation devalues currency, which is similar to taking money from someone.
If Trump were wise, he would support Representative Thomas Massie’s (R-Ky.) Federal Reserve Board Abolition Act and Senator Mike Lee’s (R-Utah) companion bill, S. 869, in the Senate.
If you’d like to learn more about how you can help abolish the Fed, visit the John Birch Society’s “End the Fed” action page.
