Prof. Ilan Wurman Quoted in Wall Street Journal About Trump’s Ability to Remove Fed Governor

Professor Ilan Wurman, Julius E. Davis Professor of Law, was quoted in the Wall Street Journal about Donald Trump seeking to remove Federal Reserve Governor Lisa Cook, potentially crossing a red line the court has suggested protects the central bank from direct political manipulation. Since taking office, Trump repeatedly has taken aim at federal laws protecting a range of government officials from arbitrary dismissal, firing without cause Democratic appointees serving fixed terms to supervise agencies that oversee consumer safety, labor organizing, fair-trade practices and the integrity of the civil service, among others. In a letter last week, Trump told Cook that unproven allegations of mortgage fraud were sufficient cause for her dismissal. Cook has said no cause exists and that she will not resign. A final decision will likely be made by the U.S. Supreme Court, which its majority has signaled that it would apply a different standard for the Fed than other independent agencies in making decisions on the legality of appointee removals. Some scholars say the court will have a tough time finding a clear distinction that shields the Fed from presidential interference while granting Trump nearly unfettered power to dismiss all other federal officers. Prof. Wurman said, “The Federal Reserve is not just a bank. It has tremendous regulatory authority. There is no executive power exception for financial regulators, and never has been.”