The court understood that the president cannot dismiss the Fed governor Lisa Cook at this time, but validated the rest of the mass layoffs
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The Supreme Court of the United States ruled on Monday that President Donald Trump cannot fire the governor of the Federal Reserve, the ultra-democrat Lisa Cook, in a 5 to 4 vote where conservative justices John Roberts and Brett Kavanaugh joined the votes of the left-leaning justices.
"Accepting any of those arguments would effectively transform the Federal Reserve's 'just cause' protection into an at-will employment," wrote Roberts, the president of the high court. Justice Clarence Thomas expressed his dissent joined by justices Samuel Alito, Neil Gorsuch, and Amy Coney Barrett.
Cook had filed a lawsuit against Trump, the Board of Governors of the Federal Reserve, and then-Federal Reserve Chairman Jerome Powell, after Trump fired her last summer for committing mortgage fraud. The White House argued that courts cannot interfere with the president's authority to remove members of the U.S. Central Bank for just cause.
The Supreme Court halted Cook's dismissal at the Fed but allowed Trump to make other key dismissals in the State
The crimes Cook was accused of
The criminal investigation indicates that Cook, as the owner of three properties, committed mortgage fraud by lying on her mortgage application and falsifying bank statements when she designated her out-of-state condominium in Atlanta as her "primary residence," just two weeks after applying for a loan for her home in Michigan, which she also declared as her "primary residence" to obtain tax benefits.
This crime was discovered by the government's housing director, Bill Pulte, who referred the case to criminal justice. The attorneys for the governor nominated by former President Biden in 2022 absurdly claimed that there would be an inflation crisis if Trump were allowed to fire Cook.
Lisa Cook was nominated by Biden to the Fed in 2022
Trump's reaction to the ruling
Trump reacted to the Court's ruling by stating that his administration will take steps to prevent Cook from continuing in her role on the Board of Governors. "Cook's lawsuit, related to her suitability to be part of the Federal Reserve Board, was returned by the Supreme Court on a strictly procedural basis," the president wrote.
"We will take appropriate action immediately to ensure that someone who has committed irregularities does not make vital decisions regarding the welfare of the United States of America! Thank you for your attention to this matter", the president concluded.
In a separate ruling, also issued this morning, the Court ruled that Trump can remove Rebecca Slaughter, a member of the Federal Trade Commission who was appointed by Biden in 2022, granting the president the legal authority to remove heads of agencies throughout the executive branch.
Trump may carry out mass layoffs in other parts of the State, the Court said
