On Monday night, Governor of the U.S. Federal Reserve, Lisa Cook really rocked the boat. She announced on social media that former President Donald Trump can’t fire her because he never hired her. Excerpt from Cook’s response to Trump’s announcement to fire her. She claims that his action lacks any legal justification.
In defense of her resignation, Cook stated, “I refuse to quit.” Her determination to retain her role at the Federal Reserve is fueled by the absence of any charges or convictions against her. To solidify her case, she has retained high-profile attorney Abbe Lowell, out of Washington, D.C. He will be the one challenging Trump’s move to boot her out to his base.
Cook became very active in the coalition among governors that formed to promote sound monetary policy. Interestingly, his last vote was to leave interest rates where they are. It is further evidence of this involvement that she loves what she does, her commitment to her central bank’s stability.
Indeed, Trump’s announcement received plenty of positive attention across the financial media airwaves, most implicitly from statement-savant Howard Lutnick. Appearing on CNBC’s “Squawk Box,” Lutnick expressed uncertainty about who would control Cook’s salary or access to the Federal Reserve following the attempted ouster.
Specifically, Lutnick questioned Cook’s integrity in issues involving Cook’s alleged mortgage fraud. He stated, “The real question should be, did she commit mortgage fraud?” His remarks represent a larger fear about holding government officials accountable for the jobs they do—or don’t do.
“This woman should go away if she’s committed to mortgage fraud, and those signatures sure as heck look like hers.” – Howard Lutnick
Lutnick’s remarks prompted discussions about the implications of such allegations for Cook’s position. He suggested that if the circumstances were reversed, there would be calls for immediate action against anyone in a similar situation.
“Imagine anyone in the Cabinet who did this. You guys would be calling for their head,” – Howard Lutnick
In light of these advancements, Lutnick urged the Department of Justice to take a leading role. As he put it, they had to address the possibility of future wrongdoing.
“The answer is, the Department of Justice will go take this on and deal with this,” – Howard Lutnick
Without hesitation, Cook boldly claims her authority and legitimacy. The simmering conflict over her tenure at the helm of the Federal Reserve remains extremely palpable. As her legal battle is approaching a climax, the debates on her misconduct continue. If true, these developments may have tremendous ramifications for her career and this High Level Commission institution.