Source Details

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                "text": "Lisa Cook, who has not been charged with a crime, sought to retain her position, arguing her firing was \u201cunprecedented and illegal.\u201d",
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                "text": "Many experts have questioned the legality of President Trump\u2019s attempt to fire Lisa Cook, a Federal Reserve governor.",
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                "text": "Lisa Cook, a governor on the Federal Reserve Board, sued President Trump on Thursday over his decision to fire her from the nation\u2019s central bank, arguing that she should be able to retain her position because the White House had no authority to order the dismissal.",
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                "text": "Ms. Cook\u2019s lawsuit, which was filed in the U.S. District Court for the District of Columbia, described her ouster as \u201cunprecedented and illegal,\u201d as she framed Mr. Trump\u2019s actions as part of an overtly political campaign to pressure the independent Fed into lowering interest rates.",
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                "text": "The lawsuit sets the stage for a landmark legal battle over the future of the Fed, an independent institution that Mr. Trump has savaged for months in a bid to install new political loyalists who share his views on monetary policy.",
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                "text": "Ms. Cook also listed the Fed\u2019s Board of Governors and Jerome H. Powell, its chair, as defendants alongside Mr. Trump.",
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                "text": "In a statement earlier this week, the Fed said that it would \u201cabide by any court decision.\u201d",
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                "text": "Until the court rules, Ms. Cook is still considered an active governor.",
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                "text": "Ms. Cook officially embarked on her legal campaign three days after Mr. Trump announced that he would fire her in a letter posted to social media.",
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                "text": "The president claimed that Ms. Cook, who was confirmed by the Senate in 2022, had engaged in mortgage fraud, as he invoked a power in the Fed\u2019s founding statute that allowed him to dismiss governors for cause.",
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                "text": "But Ms. Cook, the first Black woman to serve as a Fed governor, has not been charged or convicted of any crime.",
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                "text": "Many experts questioned the legality of Mr. Trump\u2019s actions, pointing out that the allegations against Ms. Cook were unproven and involved conduct that predated her time at the Fed.",
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                "text": "Nor was Ms. Cook afforded an opportunity to review the evidence and respond to the claims formally, which struck many observers as legally problematic.",
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                "text": "In a 24-page filing, lawyers for Ms. Cook said the firing would \u201csubvert\u201d the central bank\u2019s congressionally mandated protections as laid out in the Federal Reserve Act.",
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                "text": "The filing also said Mr. Trump violated Ms. Cook\u2019s right to due process, highlighting that she had no chance to respond to the allegations before the president announced her termination.",
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                "text": "The lawsuit did not provide an explanation for why Ms. Cook listed two residences as her primary residence, which is the issue at the crux of a campaign against her.",
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                "text": "\u201cThe unsubstantiated mortgage fraud allegations that allegedly occurred prior to Governor Cook\u2019s Senate confirmation do not amount to \u2018inefficiency, neglect of duty or malfeasance in office,\u2019\u201d the lawsuit says, \u201cnor has the president alleged that they do.\u201d",
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                "text": "Inefficiency, neglect of duty and malfeasance in office are the three types of misconduct generally regarded under law as grounds for the president to remove an official for cause.",
                "simplified_text": "Inefficiency neglect of duty and malfeasance in office are grounds for the president to remove an official for cause",
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                "text": "The lawyers asked the district court to allow Ms. Cook to continue serving at the Fed on a temporary basis while she contested the legality of her firing.",
                "simplified_text": "Lawyers asked the district court to allow Lisa Cook to continue serving at the Fed temporarily",
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                "text": "That could allow her to cast a vote on the direction of interest rates at the next Fed meeting to discuss borrowing costs in September.",
                "simplified_text": "Allowing Lisa Cook to continue serving could allow her to vote on interest rates in September",
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                "text": "\u201cCook asks the court to conclude the obvious: that it is illegal to remove a member of the Federal Reserve Board for something they \u2018may' have done prior to taking office,\u201d said Lev Menand, a professor at Columbia Law School who studies the Fed.",
                "simplified_text": "Lev Menand said it is illegal to remove a Fed member for something they may have done prior to taking office",
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                "text": "\u201cIt is also illegal to do so without providing her with notice and an opportunity to be heard.",
                "simplified_text": "It is illegal to remove a Fed member without providing notice and an opportunity to be heard",
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                "text": "Ms. Cook retained her own counsel in the lawsuit, and she is not represented by the Federal Reserve.",
                "simplified_text": "Lisa Cook retained her own counsel in the lawsuit she is not represented by the Federal Reserve",
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                "text": "The lawsuit also stressed the importance of a Fed that was insulated from the White House, saying that it was \u201cessential for a stable economy, as the short-term political interests of a president often clash with sound monetary policy.\u201d",
                "simplified_text": "The lawsuit stressed the importance of a Fed insulated from the White House essential for a stable economy",
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                "text": "It warned that a Fed setting policy based on ways to make the government\u2019s debt more manageable, as the president has urged, would lead to \u201ceconomic collapse and hyperinflation.\u201d",
                "simplified_text": "A Fed setting policy to make government debt more manageable would lead to economic collapse and hyperinflation",
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                "text": "\u201cAllowing the president to remove members of the board over policy disagreements would also render illusory the board\u2019s independence,\u201d the lawsuit added.",
                "simplified_text": "Allowing the president to remove board members over policy disagreements would render illusory the board's independence",
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                "text": "In the meantime, Mr. Trump has signaled that he has started to explore potential replacements for Ms. Cook.",
                "simplified_text": "Mr Trump has signaled that he has started to explore potential replacements for Lisa Cook",
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                "text": "His administration is also likely to appeal any ruling that allows Ms. Cook to remain in her job temporarily, priming the battle for the Supreme Court, where the justices in recent months have allowed the president to dismiss the leaders of some independent federal agencies at will.",
                "simplified_text": "The Trump administration is likely to appeal any ruling allowing Lisa Cook to remain in her job",
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                "text": "While the justices have acknowledged there may be special protections afforded to the Fed, court observers say Ms. Cook\u2019s case may nonetheless present a series of novel legal issues to resolve, including what constitutes a cause that would allow a president to fire a sitting governor.",
                "simplified_text": "Court observers say Lisa Cook's case may present novel legal issues including what constitutes a cause to fire a sitting governor",
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                "text": "The term is generally understood to mean professional neglect or malfeasance, though it is not clearly defined in the Fed statute.",
                "simplified_text": "The term 'cause' is generally understood to mean professional neglect or malfeasance",
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                "text": "The lawsuit cited the Supreme Court\u2019s recent characterization of the Fed as a \u201cuniquely structured, quasi-private entity\u201d as a signal that it was seen as distinct from the other independent agencies, whose top brass Mr. Trump has already removed.",
                "simplified_text": "The lawsuit cited the Supreme Court's characterization of the Fed as a uniquely structured quasi-private entity",
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                "text": "\u201cIf President Trump\u2019s attempt at firing her stands, then there is no exception for the Federal Reserve,\u201d said Peter Conti-Brown, an expert on Fed governance at the University of Pennsylvania, warning that it would open the door for Mr. Trump to try to dismiss other policymakers with whom he disagrees.",
                "simplified_text": "Peter Conti-Brown said if President Trump's attempt at firing Lisa Cook stands there is no exception for the Federal Reserve",
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                "text": "In a statement issued after she filed her lawsuit, Mr. Desai said that Mr. Trump had established a \u201ccause\u201d for dismissal based on the fact she was \u201ccredibly accused of lying in financial documents from a highly sensitive position overseeing financial institutions.\u201d",
                "simplified_text": "Kush Desai said Mr Trump had established a cause for dismissal based on Lisa Cook being credibly accused of lying in financial documents",
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                "text": "\u201cThe removal of a governor for cause improves the Federal Reserve Board\u2019s accountability and credibility for both the markets and American people,\u201d Mr. Desai added.",
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