Federal Reserve Governor Lisa Cook Files Lawsuit Against Trump Over Firing Attempt

Sat Sep 13 2025 15:27:06 GMT+0300 (Eastern European Summer Time)

In a landmark legal battle, Fed Governor Lisa Cook is suing President Trump following his attempt to remove her from her position, raising questions about the autonomy of the US central bank.

Lisa Cook, a governor on the US Federal Reserve board, has launched a lawsuit against President Trump after he attempted to fire her, claiming his actions threaten the independence of the central bank. The lawsuit contends that Trump's justification for the dismissal is unfounded and challenges the legality of his order. Cook is seeking a court ruling to declare the firing invalid.

Federal Reserve governor Lisa Cook has sued President Donald Trump over his attempt to fire her, setting up a potential legal battle with implications for the US central bank's autonomy.

Cook has asked the court to declare Trump's firing order unlawful and void, naming Fed Chairman Jerome Powell as a defendant.

Trump claimed there was sufficient reason to believe Cook made false statements regarding her mortgage, citing constitutional powers that he argued allowed her dismissal. Cook has countered that no cause exists under the law to remove her.

The president has exerted increasing pressure on the Federal Reserve regarding what he perceives as a reluctance to lower interest rates.

Cook is a key figure on the board responsible for rate-setting in the US, and this lawsuit could lead to significant legal challenges potentially reaching the US Supreme Court.

In her lawsuit, Cook’s attorney Abbe Lowell argues that Trump’s attempt to remove her is unprecedented and illegal, highlighting that the Federal Reserve Act requires a valid cause for removal, which they argue has not been demonstrated regarding Cook.

White House spokesperson Kush Desai defended the president, stating that Trump's actions were lawful due to accusations against Cook regarding misleading financial disclosures.

The allegations against Cook stem from a letter by Bill Pulte, a Trump ally, claiming she falsified records to secure a mortgage. However, no charges have been filed against her, and it remains unclear if there is an active investigation.

Cook’s lawsuit does not directly address these allegations but emphasizes the need to protect the integrity of the Federal Reserve.

If Cook were to be removed, it could allow for a replacement more aligned with Trump’s interests in shaping economic policy, particularly concerning interest rates — a critical factor affecting borrowing costs and savings for Americans.

The case has garnered significant attention, as it touches upon the broader issue of political influence on the Federal Reserve and its decision-making processes.