Overview

• A bipartisan amicus brief from Alan Greenspan, Ben Bernanke, Janet Yellen and former Treasury secretaries contends that ousting Lisa Cook now would undermine the Federal Reserve’s independence and credibility.
• The Justice Department asked the justices on Sept. 18 to lift injunctions blocking the removal, and Cook filed her response Thursday urging the Court to deny the request.
• U.S. District Judge Jia Cobb ruled the stated basis likely does not meet the Federal Reserve Act’s “for cause” standard, and a D.C. Circuit panel later cited due-process deficiencies in denying emergency relief.
• The allegations arise from FHFA Director Bill Pulte’s claims about 2021 mortgage filings, which Cook denies, and reporting by AP, Reuters and NBC describes documents that appear to contradict the fraud accusation.
• Cook remains on the Board and took part in last week’s quarter-point rate cut, highlighting the near-term policy impact if her seat were opened during the litigation.