Federal Reserve governor Lisa Cook will file a lawsuit challenging her removal by President Donald Trump, marking a major escalation in the president's battle with the US central bank. President Trump has no authority to remove Federal Reserve Governor Lisa Cook, her lawyer Abbe David Lowell said in a statement. The president has stated there was sufficient reason to believe Cook had made false statements on her mortgage and cited constitutional powers allowing him to remove her. This unprecedented move comes as Trump has increasingly pressured the Fed, particularly its chair Jerome Powell, over what he views as an unwillingness to lower interest rates.
In a statement, Cook emphasized, I will not resign. I will continue to carry out my duties to help the American economy as I have been doing since 2022. The Fed's independence is crucial for maintaining public confidence, especially as its decisions directly affect borrowing costs and banking savings rates across the nation. As this narrative unfolds, financial experts and economists alike are closely watching the implications of Trump's moves on market stability and the overall U.S. economy.
In a statement, Cook emphasized, I will not resign. I will continue to carry out my duties to help the American economy as I have been doing since 2022. The Fed's independence is crucial for maintaining public confidence, especially as its decisions directly affect borrowing costs and banking savings rates across the nation. As this narrative unfolds, financial experts and economists alike are closely watching the implications of Trump's moves on market stability and the overall U.S. economy.
