Trump Asks Judge To Reject Fed Governor Lisa Cook’s Bid To Block Her Firing From Federal Reserve: Report

President Donald Trump reportedly urged a federal judge on Friday to reject Federal Reserve Governor Lisa Cook’s request for an injunction that would prevent him from firing her.

According to a CNBC report, the Fed stated that it would not take a position on Cook’s lawsuit challenging her removal but requested a “prompt ruling” to resolve the dispute in a separate filing. 

The report stated that both filings were submitted approximately two hours before the scheduled hearing on Cook’s request for a temporary restraining order, which would block her dismissal, in a U.S. District Court in Washington, D.C. 

Cook sued Trump on Thursday, arguing that the U.S. President lacks legal cause to fire her. The report stated that Trump’s filing countered the notion that the matter is at the president’s discretion. The move follows allegations of mortgage fraud raised last week by Federal Housing Finance Agency Director Bill Pulte, a Trump ally. Cook has denied the claims, with her attorney Abbe Lowell calling them a “smear campaign” unrelated to her role at the Fed, the report said.

“Nothing in these vague, unsubstantiated allegations has any relevance to Gov Cook’s role at the Federal Reserve, and they in no way justify her removal from the Board,” Lowell said.

U.S. equities were in the red during morning trade on Friday after data showed the personal consumption expenditure (PCE) index rose 2.6% in July, higher than the Federal Reserve’s 2% target. The SPDR S&P 500 ETF (SPY) fell 0.68%, the SPDR Dow Jones Industrial Average ETF (DIA) slipped 0.42%, and the Nasdaq-100 tracking Invesco QQQ Trust (QQQ) was down 1.1%. Retail sentiment around QQQ on Stocktwits fell to ‘bearish’ from ‘neutral’ territory over the past day.

Read also: Fannie Mae, Freddie Mac IPO Plans Face Democratic Pushback On Mortgage Rate Risks: Report

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