The White House opens a second attempt to remove a Fed governor, supplying the notice the Supreme Court said it owed her
White House Deputy Chief of Staff Dan Scavino notified Federal Reserve governor Lisa Cook that President Trump was considering whether to remove her from the Fed and gave her 21 days to respond to mortgage fraud allegations — the administration's second removal attempt, opened after the Supreme Court held that Cook was entitled to notice and an opportunity to respond before she could be fired.
What happened
The Supreme Court had rebuffed the administration's first attempt to fire Cook by a vote of 5-4, in an opinion by Chief Justice Roberts holding that she was entitled to notice and some opportunity to respond; the justices said Trump could try again if he provided proper notice and a chance to contest it. Scavino's 5 August letter supplied that process and started a 21-day clock. A White House aide had given Cook until Wednesday to respond, and she answered on that deadline, telling the White House through her lawyers that there is no legal basis to remove her. AP reports that if Trump is able to remove Cook, he could name a replacement and his appointees would gain a majority on the Fed's board.
Why it matters
The Supreme Court did not hold that the President may not remove a Federal Reserve governor; it held that he must give notice and a chance to respond first. A letter that supplies exactly that — notice that removal is under consideration, and a 21-day clock — treats the ruling as a form to complete rather than a limit to meet, and it tests whether procedural process alone is what stands between the White House and a seat on the board — the seat that would give the President's appointees a majority there.