
In his second term as President, Donald J. Trump has set about remaking the federal government. Recently the President sought to terminate Federal Reserve Governor Lisa Cook, asserting that she allegedly engaged in mortgage fraud and that this alleged misconduct constituted legal “cause” for her removal. Cook has denied the allegations and sued to retain her position. Thus far, a federal district court has issued a preliminary injunction preventing her removal. The Trump administration has filed a notice of appeal.
Cook’s case raises a number of fascinating legal questions: Could the alleged mortgage fraud, which is claimed to have occurred prior to her appointment to the Federal Reserve, constitute “cause” for termination? The district court said no. Cook also asserted that her termination was procedurally improper. The district court indicated its agreement, stating that the “removal also likely violated Cook’s procedural rights under the Fifth Amendment’s Due Process Clause.” As Cook’s case proceeds through the legal system, federal courts, including possibly the Supreme Court, will have to address whether her claims are justiciable – that is, whether they are capable of being decided by a court. Beau J. Baumann, Ph.D. in Law candidate at Yale and former Justice Department attorney, discusses these issues with Associate Dean Rodger Citron.