“It is inconceivable that you were not aware of your first commitment when making the second. It is impossible that you intended to honor both,” Trump wrote. “The American people must be able to have full confidence in the honesty of the members entrusted with setting policy and overseeing the Federal Reserve. In light of your deceitful and potentially criminal conduct in a financial matter, they cannot and I do not have such confidence in your integrity.”
Cook refuses to resign
Cook, however, said Trump’s action carries no legal force. “President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so,” she said in a statement. “I will not resign.”
Her attorney, Abbe Lowell, dismissed Trump’s move as “flawed” and vowed to pursue legal remedies.
Legal fight looms
The Federal Reserve Act permits governors to be removed “for cause,” but legal experts said that provision has rarely been tested.
“This is a procedurally invalid removal under the statute,” Lev Menand, a Columbia law professor, told AP News. “This is not someone convicted of a crime. This is not someone who is not carrying out their duties.”