A U.S. appeals court declined on Monday to allow Donald Trump to fire Federal Reserve governor Lisa Cook — the first time a president has pursued such action since the central bank’s founding in 1913 — in the latest step in a legal battle that threatens the Fed’s longstanding independence.

The decision by the U.S. Court of Appeals for the District of Columbia Circuit means that Cook can for now remain at the Fed ahead of its policy meeting on Tuesday and Wednesday, when it is expected to cut U.S. interest rates to shore up a cooling labour market.

The court denied the Justice Department’s request to put on hold a judge’s order temporarily blocking the Republican president from removing Cook, an appointee of Democratic former president Joe Biden.

  • collar@lemmy.world
    13·
    5 hours ago

    Heading to SCOTUS? Gorsuch & Kavanaugh have been drooling for the right moment to declare independent agencies unconstitutional, let alone Thomas and Alito. That’s 4 votes right there.

    • mkwt@lemmy.world
      9·
      5 hours ago

      Yep, straight to SCOTUS.

      The thing that makes the outcome suspenseful is that Gorsuch and Kavanaugh have been signalling “but not the Fed” when they’re attacking agency independence. Probably because they have stock portfolios.

      So it seems like they may try to carve some distinction that saves the Fed from the same fate as the FTC, CFPB, NRLB, and merit protection board. It’s not at all clear what’s that might be.

  • henfredemars@infosec.pubEnglish
    441·
    13 hours ago

    Fire her, don’t fire her, but the writing’s on the wall at this point. This decision doesn’t change that the trust in the US dollar has been severely injured by the administration. The world is rotating out of the dollar and into other holdings to hedge against madness such as politically-motivated firings at the Federal Reserve.

    We should not have reached this point. It is insanity.

    • WanderingThoughts@europe.pub
      10·
      8 hours ago

      It’s part of trump’s twisted plan. Devalue the dollar so it’s easier to sell and export stuff so you bring manufacturing back, and this bring back that golden age.

      That it was only golden because the rest of the world didn’t have manufacturing yet or it was blown up in the war is not taken into account. That it might lead to sweatshop like conditions this time around is not his problem.