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MaddowBlog-The Fed backs Lisa Cook as the White House's unprecedented offensive continues
Donald Trump, exercising a power he does not appear to have, tried to fire a Federal Reserve governor. It’s clearly not going well.
Link to tweet
https://www.msnbc.com/rachel-maddow-show/maddowblog/lisa-cook-white-house-federal-reserve-rcna227593
For its part, the Fed appeared to side with Cook. The New York Times reported:
The statement didn’t explicitly criticize Trump’s attempt, though it did implicitly question the validity of the president’s claim, noting that “Congress, through the Federal Reserve Act, directs that governors serve in long, fixed terms and may be removed by the president only ‘for cause.’”
Or put another way, as far as the Fed is concerned, Cook is still a Fed governor, whether Trump likes it or not.
A day later, CNBC reported:
Putting aside the absurdity of anyone associated with this White House using the word “honorable,” and putting aside the bizarre proposition that a Federal Reserve official should take a leave of absence based on unproved allegations from a dubious partisan, there was another key point implicit in Hassett’s comments: He seemed to acknowledge that Cook remains in her position, the president’s gambit notwithstanding. (If she’s been fired, she wouldn’t need to go on “leave.”)....
To the extent that reality has any bearing on the debate, between Trump and Cook, only one of these officials has been charged and convicted of crimes — and I’ll give the president a hint: Cook isn’t the one with a record of “infractions.”
In its first public comments since President Trump moved to fire Lisa Cook, a governor on the Federal Reserve Board, the Fed on Tuesday sought to defend its structure and independence. In a statement, a spokesperson for the central bank noted that governors have ‘long tenures and removal protections,’ describing those features as a ‘vital safeguard, ensuring that monetary policy decisions are based on data, economic analysis, and the long-term interests of the American people.’
The statement didn’t explicitly criticize Trump’s attempt, though it did implicitly question the validity of the president’s claim, noting that “Congress, through the Federal Reserve Act, directs that governors serve in long, fixed terms and may be removed by the president only ‘for cause.’”
Or put another way, as far as the Fed is concerned, Cook is still a Fed governor, whether Trump likes it or not.
A day later, CNBC reported:
President Donald Trump’s top economic adviser, Kevin Hassett, said Wednesday that Federal Reserve Board of Governors member Lisa Cook should go on leave from the central bank even as she plans to file a lawsuit challenging her removal by Trump. ‘If I were her in her circumstance, I would take leave,’ Hassett told reporters outside the White House. ‘I think it’s the honorable thing to do,’ he continued.
Putting aside the absurdity of anyone associated with this White House using the word “honorable,” and putting aside the bizarre proposition that a Federal Reserve official should take a leave of absence based on unproved allegations from a dubious partisan, there was another key point implicit in Hassett’s comments: He seemed to acknowledge that Cook remains in her position, the president’s gambit notwithstanding. (If she’s been fired, she wouldn’t need to go on “leave.”)....
To the extent that reality has any bearing on the debate, between Trump and Cook, only one of these officials has been charged and convicted of crimes — and I’ll give the president a hint: Cook isn’t the one with a record of “infractions.”