Federal Reserve Governor Lisa Cook’s lawyers blasted President Donald Trump’s move to oust her as based on nothing more than a pack of “cut-and-paste” allegations related to mortgage fraud.
In a flurry of court filings Tuesday, Cook’s lawyers emphasized arguments that Trump lacked valid grounds to fire Cook “for cause,” a key issue in her lawsuit. They said that social media posts by Federal Housing Finance Agency Director Bill Pulte, and a criminal referral to the Justice Department, didn’t give her an opportunity to respond before she was fired.
READ MORE: Cook allegations suggest new mortgage fraud priorities
Pulte’s “equivocal language makes clear that the charges against Governor Cook were nothing more than a set of cherry-picked, cut-and-paste allegations to try to give the President political cover to remove a Board member with whom he has policy disagreements,” Cook’s lawyers, including Abbe Lowell, said in one of the court filings. Pulte made similar allegations against California Senator Adam Schiff and New York Attorney General Letitia James.
Cook sued last week to block Trump’s “illegal attempt,” saying he’s using a phony pretext that doesn’t amount to sufficient “cause” to remove her from the US central bank. The dispute comes amid week’s of criticism by the Trump administration of the Fed’s reluctance to lower interest rates.
While Cook sought an emergency ruling allowing her to keep her job, court filings Tuesday indicate there likely won’t be a ruling before the end of the week. US District Judge Jia Cobb in Washington gave the government until Thursday to file additional arguments, indicating she won’t rule before then.
READ MORE: Pulte posts new criminal referral as Cook escalates lawsuit
In another filing Tuesday, Cook’s attorneys said they weren’t able to reach an agreement with the government that ensures she can continue to perform her duties while the legal fight goes forward, so she still wants a temporary ruling from the judge preserving the status quo as quickly as possible. The Fed is scheduled to meet next on Sept. 16.
“Allowing the president to lock Governor Cook out of her office, even temporarily, would amount to a crack in the foundation of the Federal Reserve’s near-century of independence,” her lawyers wrote. “That is a bell that could not be unrung, even if Governor Cook were ultimately reinstated.”
The Fed hasn’t taken a position on the fight in court, only saying that it will any respect court rulings.
Cook’s lawyers also argued proper due process would have involved a formal notice of the allegations followed by a chance for Cook to refute them in an administrative process at the Federal Reserve, the FHFA, the White House or some other government entity.
The case is Cook v. Trump, 25-cv-2903, US District Court, District of Columbia.