Overview

• Arguments opened in Washington, D.C., where Lisa Cook is challenging President Trump’s Aug. 25 removal notice as unlawful.
• Judge rejected the Justice Department’s claim that courts lack authority to review the removal and said scrutiny will not be withheld entirely.
• Cook’s complaint says the cited mortgage-application allegations are unproven, unrelated to her public duties, and therefore not valid cause.
• DOJ argued in court that Cook has not offered a defense to the mortgage claims, which stem from an Aug. 20 post by FHFA Director Bill Palt referring to 2021 loans in Michigan and Georgia.
• The case could affect Federal Reserve independence and presidential power over governors, with Cook’s team alleging an effort to reshape the board’s majority.