The rules of the Lisa Cook court can remain in governor fed for now while fighting the triumphs try to say goodbye

Washington (AP) – A Federal Court ruled on Tuesday that the governor of the Lisa Cook Federal Reserve can remain in position while fighting President Donald Trump’s efforts to fire her.

The ruling, which will surely be appealed, is a blow to the efforts of the Trump administration to affirm greater control over the traditionally independent Fed, which establishes short -term interest rates to achieve its successful objectives of the Congress of stable prices and the maximum employment. Congress has also tried to isolate the Fed of everyday policy.

Trump said he was saying goodbye to Cook on August 25 for the accusations raised by one of his appointed mortgage fraud related to two properties that he bought in 2021, before joining the Fed. Cook is accused of saying that two properties were “primary residences”, which could have resulted in low payments and mortgage tasses that if a second property or investment property was designated.

Cook’s lawyers argued that fire was illegal because the presidents can only shoot the governors “for cause”, which has generally meant inefficiency, negligence of duty or embezzlement while they are in office. They also said that he was entitled to an audience and the opportunity to respond to the charges before being fired, but was not provided either. His demand denied the charges, but did not provide more details.

Mark Schiefelbein through News

The case could become a turning point for the 112 -year -old Federal Reserve. Economists prefer independent central banks because they can do unpopular things such as lifting interest rates to combat inflation more easily than elected officials.

Many economists are concerned that if the Fed falls under the control of the White House, it will maintain its lowest key interest rate than that justified by the economic foundations to meet Trump’s demands for cheaper loans. That could accelerate inflation and could also increase long -term interest rates, such as mortgages and cars loans. Investors may demand greater performance from their own bonds to compensate for greater inflation in the future, raising the costs of loans for the United States government and the entire economy.

If Trump can replace Cook, it is possible that he can obtain a 4-3 majority at the Fed Governing Board. Trump appointed two members of the Board during his first term and has nominated a key economic advisor of the White House, Stephen Miran, to replace Adriana Kugler, another governor of the Fed who unexpectedly resigned on August 1. Trump has said that he will only appoint people for the Fed who will support lower rates.

No president has tried to fire a Fed governor before.

The Supreme Court has indicated that the president cannot shoot Fed officials for policy differences, but can do so “for cause”, which generally means misconduct or negligence of duty. Cook has not been accused of any crime.

Trump has repeatedly attacked the president of the FED, Jerome Powell, and the other members of the Fed interest configuration committee for not reducing the short -term interest rate that they control more quickly. It is currently 4.3%, after fed policy formulators reduced it at a complete percentage point at the end of last year. Trump has said that he believes that he should be as low as 1.3%, a level that no Fed official and few economists support.

Powell recently pointed out that the Central Bank was inclined to reduce its rate at its next meeting from September 16 to 17. Even so, the Fed is likely to reduce its key rate slower than Trump wants, and perhaps to 3.25% more or less, higher than Trump would prefer.

Cook is the first black woman to serve as governor. She was a Marshall academic and received titles from the University of Oxford and Spelman College, and before joining the Board she taught at Michigan State University and the Kennedy Government School of Harvard University.