#FederalReserve nominee #StephenMiran, a senior #WhiteHouse economic adviser, told #Senate lawmakers Thursday that he does not plan to resign from the #Trump admin if confirmed to the Fed’s board of governors — an unusual arrangement likely to raise concerns about the #CentralBank’s #independence.

…Miran said he plans to take an unpaid leave instead of stepping down from the White House because he would only be filling a short-term slot on the 7-member #Fed board.

#law #economy

Unlike courts in the #judicial branch, where the Senate confirms #judges to life tenure to ensure their #independence, #immigration courts are part of the #ExecutiveBranch. They are run by the #DOJ’s Executive Office for Immigration Review (#EOIR). Still, while #ImmigrationJudges are department employees, they are supposed to act as neutral arbiters.

Judge Cobb’s decision is being closely watched in Washington. At stake is the Fed’s credibility as an institution meant to be #independent from #politics. The Fed’s ability to guide the #economy rests on #investors’ confidence that it will raise rates if #inflation heats up — even when doing so is unpopular in Washington.

US District Judge Jia Cobb said she would speed up the legal proceedings that could determine the fate of Trump’s attempt to oust #LisaCook, who sued #Trump, arguing that allegations of mortgage fraud cited by the White House fall short of the legal standard for removal — “cause”.

A decision is not expected until after Labor Day.

“She should not be taken out of her office, she shouldn’t be disconnected from her electronics,” said Abbe Lowell, Cook’s lawyer. “She should do all the things that she did a week ago before all this started, because that is the status quo.”

After roughly an hour pressing Cook’s lawyers, the judge began questioning Trump’s lawyers.

Lawyers representing #LisaCook & #Trump discussed whether there was sufficient #DueProcess granted to Cook when Trump said she was fired as a member of the Federal Reserve’s Board of Governors. Trump’s lawyers said in their filing before the hearing started that she had sufficient notice & had not responded to the allegations. Her lawyers contend she did not have a real opportunity to respond.

Legal experts have said that the allegations against Cook are simply pretext & that Trump’s real motive is to gain an opening on the #Fed’s Board of Governors in order to install another #loyalist who supports lower borrowing costs. “Cause can overcome bad motives. A bad motive can illuminate the fact that there was no cause,” her lawyer said.

If the courts ultimately green-light Trump’s firing of Cook, it could erode the Fed’s political #independence, which enables it to take unpopular steps like raising interest rates. A less-independent #Fed could leave Americans paying higher rates because investors would demand a higher yield to own bonds to offset potentially greater #inflation in the future, pushing up borrowing costs throughout the #economy.

#SCOTUS has signaled that the president can’t fire Fed officials over policy differences, but he can do so “for cause,” typically meaning misconduct or neglect of duty. Most legal experts say that a “for cause” removal requires some type of process that would allow Cook to respond to the charges, which hasn’t happened. #LisaCook has not been charged with any crime.

No president has sought to fire a #Fed governor in the institution’s 112-year history until #Trump posted a letter on social media late Monday saying that #LisaCook was fired. Trump said the reason for her removal were allegations that she committed mortgage fraud in 2021, before she was appointed to the board.