A court blocked President Trump's attempt to dismiss Fed Governor Lisa Cook, citing violations of the Federal Reserve Act.
According to the Supreme Court in the 1930s', ONLY with real cause not made up Trump cause.
Under the U.S. Constitution, there is no explicit provision regarding the removal of Federal Reserve Governors. The Constitution establishes only the general framework, while the specifics are governed by statute.
According to the Federal Reserve Act, Governors are appointed by the President with the advice and consent of the Senate for a term of fourteen years. The President does not possess the authority to remove a Governor at will or for purely political reasons. Removal is permitted only “for cause,” meaning in cases of serious misconduct, neglect of duty, or other legally recognized grounds.
As a matter of constitutional law and practice, this limitation serves to preserve the independence of the Federal Reserve, insulating it from direct political pressure. Courts and legal scholars have drawn analogies to other independent agencies, such as the FTC or SEC, where the President’s removal power is similarly restricted.
Therefore, the legally sound conclusion is that the President cannot constitutionally remove a Federal Reserve Governor except for cause, as defined by law.
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