Fed confirms governors can only be impeached “with just cause”

Investing.com — The Federal Reserve on Tuesday offered a safeguard to the central bank's independence, noting that governors can only be impeached “with just cause.”

This statement follows US President Donald Trump's attempt to impeach Federal Reserve Governor Lisa Cook for allegedly falsifying mortgage documents.

In its statement, the Fed said: “Lisa Cook has indicated through her personal attorney that she will immediately appeal to the court against this proceeding and will seek a judicial order confirming her right to continue her tenure on the Board of Governors of the Federal Reserve System.”

The central bank also added: “The Federal Reserve, as always, will comply with court decisions.” However, he also reiterated his commitment to transparency.

Earlier Tuesday at a Cabinet meeting at the White House, Trump said he was ready for a legal fight with Cook. Trump said: “Of course, always. It looks like there was a violation, and he can't commit that violation, especially because, if you think about it, he's liable for the mortgages.”

Trump suggested that Cook claimed in two different mortgage applications that a house would be his main residence. The president also noted that he is already considering “a lot of good people” to fill his position.

Trump added: “We're going to have a majority very soon, that's going to be great. When we have the majority, the housing market will move and everything will be great.”

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