Trump vs. the Fed Executive Power at Stake

Mike Davis: "President Trump has fired her for cause, and she is challenging it, and the Federal Reserve Board is also challenging it, trying to make this look like an attack on the Fed’s independence.

And that’s the problem. That’s the bigger problem—that this statute that created the Federal Reserve 111 years ago, or whenever it was, that established the Fed, essentially created a fourth branch of government. That is not allowed under our Constitution. Again, under Article I, Congress writes the laws. It has the legislative power.

Under Article II, the president executes the laws. He has the executive power—all of the executive power. Under Article III, the Supreme Court and the lower federal courts decide cases and controversies properly before them with redressable claims. That’s Article III, or the judicial power.

If you create this Federal Reserve System where the president cannot fire them, they are exercising executive power outside of the president’s executive authority. And the president holds the executive power—all of it—under Article II.

So if the Federal Reserve wants to defend this fraudster, Lisa Cook, and claim that the president did not have the legal authority to fire her, then the courts will have to step in and decide the matter.

I think the court will say, of course the president has the authority to fire someone for cause if they are committing mortgage fraud—especially multiple times. But if not, if the court says that does not constitute cause to fire someone, then the courts will have to address the constitutional question: whether the president has the authority under Article II of the Constitution to fire this executive branch official, Lisa Cook at the Fed.

And if he does not have that authority under the statute, then it is unconstitutional."