Federal Reserve board member Lisa Cook urged the US Supreme Court to allow her to keep her job, calling allegations against her “flimsy” and “unproven” in a case that could erode the central bank’s independence.
US President Donald Trump has wanted more power over the Fed since the start of his second term, pressuring the chairman to lower rates. In August, he demanded the removal of the Biden-appointed Cook over allegations of mortgage fraud.
A lower court ruled this month Cook could stay, and the Supreme Court is poised to hear the case. Lawyers for Cook urged the court not to fire her, rejecting the allegations. Economists told The Wall Street Journal the erosion of Fed independence was “a nightmare scenario” for the bank.