Paul Krugman: Yesterday Donald Trump said that he had fired Lisa Cook, a member of the Federal Reserve Board of Governors. My wording is advisable: He "said" that he had fired her. I'm not a lawyer, but it seems clear that he does not have the right to summarily fire Fed officials, certainly on tissue-thin allegations of mortgage fraud before she even went to the Fed.
If [Fed chairman Jerome] Powell caves, or the Supreme Court acts supine again and validates Trump's illegal declaration, the implications will be profound and disastrous. The United States will be well on its way to becoming Turkey, where an authoritarian ruler imposed his crackpot economics on the central bank, sending inflation soaring to 80 percent:
@#7 ... Oh? When was the trial? ...
Supreme Court Shields Fed (May 2025)
news.bgov.com
... The US Supreme Court shielded the Federal Reserve from Donald Trump's push to fire top officials at independent federal agencies, in a decision likely to quell concerns that the president might move to fire Jerome Powell.
In a ruling Thursday that let Trump oust officials at two other agencies, the court said its decision wouldn't apply to the Fed, calling it a "uniquely structured, quasi-private entity." ...
Fed watchers have been eagerly awaiting a Supreme Court decision to see if the court would back a carve-out for the central bank. ...
The Fed has closely guarded its independence over the past few decades. Economic research shows that countries whose central banks operate without interference from politicians or election cycles tend to have more stable prices and better economic outcomes. ...
Related ...
Mortgage-Fraud Accusations Are Trump's New Political Weapon
www.wsj.com
... The Trump administration has a new weapon at its disposal in its efforts to take down Democrats and their appointees: mortgage records.
Members of the administration have now alleged three public officials have committed mortgage fraud, referring each to the Justice Department. The administration has signaled that it has just gotten started: U.S. Pardon Attorney Ed Martin was recently tapped "to investigate fraud by public officials in mortgages," according to a letter Martin sent. ...
The Fed and Article II
Drawing on overlooked documents and congressional debates, this Article offers a comprehensive assessment of the Federal Reserve's constitutionality under Article II. We conclude that under the Court's modern precedent, which requires Congress to clearly state when it wishes to restrict removal, the President likely already enjoys a great deal of statutory authority to remove the Federal Reserve's leaders.
Beyond that, in light of the Federal Reserve's current structure and functions, the President might have constitutional authority to do so. To the extent the Federal Reserve exercises inherently "executive power""such as initiating enforcement actions, issuing fines, and promulgating consumer-protection rules"precedent suggests that Congress cannot prevent the President from freely removing the Federal Reserve Chair, members of the Board of Governors, and perhaps other senior officials
publications.lawschool.cornell.edu
Here is the US Code 12.242
Upon the expiration of the term of any appointive member of the Federal Reserve Board in office on August 23, 1935, the President shall fix the term of the successor to such member at not to exceed fourteen years, as designated by the President at the time of nomination, but in such manner as to provide for the expiration of the term of not more than one member in any two-year period, and thereafter each member shall hold office for a term of fourteen years from the expiration of the term of his predecessor, unless sooner removed for cause by the President.
www.law.cornell.edu
Good luck.
In Wilcox vs Trump
Because the Constitution vests the executive power in the President, see
Art. II, 1, cl. 1, he may remove without cause executive of-
ficers who exercise that power on his behalf, subject to nar-
row exceptions recognized by our precedents, see Seila Law
LLC v. Consumer Financial Protection Bureau, 591 U. S.
197, 215'218 (2020).
www.supremecourt.gov
He doesn't even need cause if he uses Article II, this would align with my previous post from above on the opinion of the law school Whatsleft denigrated so politiely.
Though for some reason in this particular situation Trump is using the For Claus provisions noted above.
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