The post Trump’s DOJ says Lisa Cook leaving the Fed won’t trigger market disaster appeared on BitcoinEthereumNews.com.

Donald Trump’s legal team told the Supreme Court on Friday that forcing Lisa Cook out of the Federal Reserve Board won’t crash the financial markets. The Department of Justice, through Solicitor General D. John Sauer, argued that Trump has the legal right to remove Cook now, even while her lawsuit over the firing is still in court. According to Sauer, the president is facing “irreparable harm” because lower courts are blocking him from finalizing the removal. Sauer wrote that letting Trump fire Lisa for alleged financial misconduct doesn’t interfere with the Fed’s independence. He added that removing her would not cause a “financial market disaster.” The DOJ wants the court to grant a stay so Cook’s ouster can move forward immediately. Trump fired her in late August, citing possible mortgage fraud tied to two properties she claimed as her “primary residence” before she joined the Fed in 2022. Lisa denies charges while court fight escalates Lisa has denied committing mortgage fraud. Her legal team fired back in a Supreme Court brief on Thursday, accusing Trump of trying to gut the Fed’s independence. They said his request for a stay is really an attempt to get the court to “act on an emergency basis to eviscerate the independence of the Federal Reserve Board.” They’re pointing to the Federal Reserve Act of 1913, which says a president can only remove a Fed governor “for cause.” Her lawyers argued that the charges Trump is using aren’t valid under that law. “The manufactured charges,” they wrote, are based on events that happened before she joined the Board, and “fail to satisfy” the legal standard. They also said granting the stay would send a message that the Fed is now under presidential control, warning it would “risk chaos and disruption” in financial markets. Sauer pushed…

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Filed under: News - @ September 27, 2025 7:25 am