US Fed to abide by court rulings on Cook’s dismissal

The Federal Reserve affirmed, on Aug. 26, that it will comply with any court ruling as regards US President Donald Trump’s attempt to dismiss Federal Reserve Board Governor Lisa Cook, a move Cook described as “illegal” and vowed to challenge in court.

A Fed spokesperson stated that the 14-year terms for board members, along with protections against removal, are key pillars ensuring that monetary policy decisions are based on data, economic analysis, and the long-term interests of the American people.

He added that the law stipulates removal is permitted only “for cause” and confirmed that the Fed will continue to carry out its duties “as prescribed by statute.”

The statement coincided with Trump holding a cabinet meeting, where he renewed his criticism of Fed Chair Jerome Powell, accusing him of bias and failing in his responsibilities.

Trump also hinted at the possibility of further changes in the Fed’s leadership, saying he would soon secure a majority on the board following Cook’s dismissal, enabling him to push for faster interest rate cuts.