Overview

• The Justice Department filed an emergency application asking the justices to lift lower-court orders so the first-ever presidential firing of a Federal Reserve governor can take effect during ongoing litigation.
• U.S. District Judge Jia M. Cobb reinstated Cook, finding she likely was denied due process and that the Federal Reserve Act’s 'for cause' clause likely does not reach pre-appointment conduct; a divided D.C. Circuit declined to stay that order.
• Cook remained on the Board and participated in this week’s FOMC meeting, voting for a quarter-point interest rate cut.
• The administration argues Cook has no protected property interest in her post and that the president’s 'for cause' determination over alleged mortgage misstatements is not subject to judicial second-guessing; Cook denies wrongdoing and faces no charges.
• The allegations stem from FHFA Director Bill Pulte’s referrals that triggered a DOJ mortgage-fraud probe, while documents showing an Atlanta condo labeled a 'vacation home' have undercut claims she declared dual primary residences.