An emergency court hearing on President Donald Trump’s attempt to fire Fed Gov. Lisa Cook did not rule on Friday.
Cook’s lawyers demanded a temporary restraining order to prevent Trump from evacuating his role, calling the president’s dismissal “illegal and invalid.”
Trump said there was “full reason” to believe Cook made false statements on the mortgage and cited constitutional powers, which he said allowed him to remove him.
The case sparked a potential legal battle that could reach the Supreme Court, which had an impact on the independence of the U.S. central bank.
Cook’s attorney Abbe Lowell spent part of his remarks, believing that Cook should stay in her job in the lawsuit.
“She shouldn’t be taken out of the office, she shouldn’t be disconnected from electronics,” he said. “She should do everything she did a week ago before all this started because that’s the status quo.”
Senior Justice Department attorney Yaakov Roth argued that there were reasons to dismiss Cook and said the president’s desire to remove her from work was even more shocked by the Fed.
Since returning to the White House, Trump has put more and more pressure on the Fed as he believes he is reluctant to lower interest rates.
Most of Friday’s arguments focused on whether Trump had a reason to remove Cook from her work.
The Fed Act does not give the president the authority to remove Fed officials, but as Trump says, it does allow him to do so “for his career.”
Mr Ross said the “reason” is that it is “not just a policy difference” but also a person’s ability to work.
He argued that “very senior financial regulatory officers” who made “contradictory” statements on financial documents could constitute a reasonable cause of dismissal.
Cook was accused of forging records to obtain a mortgage in an open letter from housing finance regulator Bill Pulte, an allies of Trump.
The letter claimed she signed two documents for two weeks, proving that both homes in different states were her primary residence. Cook made no charges.
Cook’s lawsuit did not resolve the mortgage charges.
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