finance
Supreme Court Blocks Immediate Removal of Federal Reserve Board Member
The Supreme Court ruled 5-4 that a Federal Reserve board member is entitled to notice and an opportunity to respond before termination. The attorney for the board member said efforts to pursue criminal charges will fail.
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The Supreme Court ruled 5-4 on Monday that a Federal Reserve board member must receive notice and an opportunity to respond before any termination. The decision, written by Chief Justice John Roberts, prevents immediate removal from the board. Roberts and Justice Brett Kavanaugh joined the court's three liberal justices in the majority.
Justices Clarence Thomas, Samuel Alito, Neil Gorsuch and Amy Coney Barrett dissented.
The board member's attorney said Monday that President Trump and Federal Housing Finance Agency officials will not succeed in pursuing prosecution on mortgage fraud allegations. Abbe Lowell stated no grounds exist for indictment and that no real prosecutor would present such a case.
Lowell also referenced prior unsuccessful mortgage fraud proceedings against New York Attorney General Letitia James, whom he represents, as an indicator of the likely outcome.
Trump stated in a Truth Social post that the lawsuit was returned on procedural grounds and that appropriate action would follow to ensure someone who has committed wrongdoing does not make vital decisions. Officials said they would launch another attempt to seek criminal indictment. The board member will remain in position while further legal steps proceed.
