"Trump announced her firing in late August over accusations, lodged by his housing chief, that in mortgage applications on two separate properties she claimed both were her primary residence. The accusation, which Federal Housing Finance Agency director Bill Pulte referred to the Justice Department for criminal prosecution, has not been litigated in any court or formal process. Reuters reported Friday that separate documents issued by Cook's credit union listed one of the properties, a condo in Atlanta, as a vacation residence."
"The dispute is over how that cause must be established, and whether issues involving a private financial issue before the appointee took office qualify. Trump administration lawyers argue that the president has broad authority to remove officials based on his judgment that there is cause. Cook's lawyers have argued that if the president alone decides what constitutes cause, then there is essentially no limit on his ability to fire central bank officials, contrary to the design of the Federal Reserve Act."
A ruling indicates courts may act as a brake on presidential removal of Federal Reserve officials. Advocates view the case as a test of central bank independence and whether presidents can replace Fed leaders over policy disagreements or unproven allegations. Cook holds a term through 2038 and was fired by Trump in August amid accusations about mortgage application residency claims. The accusation was referred to the Justice Department and has not been litigated. The Federal Reserve Act allows removal “for cause,” and the dispute centers on how cause must be established and whether the president alone can define it.
Read at Axios
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