Lisa Cook, governor of the US Federal Reserve, speaks at the Peterson Institute For International Economics in Washington, DC, US, on Thursday, Oct. 6, 2022.
Ting Shen | Bloomberg | Getty Images
President Donald Trump’s firing of Federal Reserve Governor Lisa Cook for alleged misconduct would not cause “financial market disaster,” the Department of Justice argued in a Supreme Court filing Friday.
Solicitor General D. John Sauer made that argument as he urged the high court to let Trump’s bid to fire Cook take effect while proceedings in her lawsuit against the president continue.
Trump, argued Sauer, “suffers irreparable harm” from lower-court rulings ordering Cook’s reinstatement for the time being.
On the other hand, “recognizing the President’s power to remove Governors for apparent financial misfeasance would not compromise the Federal Reserve’s policy independence,” Sauer wrote.
“Nor would removing Cook on that basis usher financial market disaster,” he added.
This is breaking news. Please refresh for updates.
